The link between exchange rate volatility and capital structure under financial liberalization: evidence from the Turkish manufacturing sector

2021 ◽  
Author(s):  
Ömer Tuğsal Doruk
Keyword(s):  
Exchange Rate ◽  
Capital Structure ◽  
Financial Liberalization ◽  
Manufacturing Sector ◽  
Exchange Rate Volatility

scholarly journals Exchange Rate Volatility and Disaggregated Manufacturing Exports: Evidence from an Emerging Country

2019 ◽  
Vol 12 (1) ◽  
pp. 12 ◽  
Author(s):  
Duc Hong Vo ◽  
Anh The Vo ◽  
Zhaoyong Zhang
Keyword(s):  
Exchange Rate ◽  
Global Financial Crisis ◽  
Manufacturing Sector ◽  
Export Performance ◽  
Exchange Rate Volatility ◽  
Exchange Rate Policy ◽  
Policy Implications ◽  
Negative Effects ◽  
Long Run ◽  
The Impact

The link between export performance and exchange rate policy has been attracting attention from policymakers, academics, and practitioners for some time, particularly for emerging countries. It has been recently claimed that implementing a policy that devalues the currency in Vietnam is an important factor for enhancing its export performance. However, it is also argued that such a policy could result in the harmful consequence of exchange rate volatility. This study analyzes the link between exchange rate devaluation, volatility, and export performance. The analysis focuses on the manufacturing sector and 10 of its subsectors that were engaged in the export of goods between Vietnam and 26 key export partners during the 2000–2015 period. Potential factors that could affect this relationship, such as the global financial crisis, Vietnam’s participation in the World Trade Organization, or even the export partners’ geographic structures, are also accounted for in the model. The findings confirm that a strategy that depreciates Vietnam’s currency appears to enhance manufacturing exports in the short run, whereas the resulting exchange rate volatility has clear negative effects in the long run. The impact of exchange rate volatility on manufacturing subsectors depends on two factors, namely, (i) the type of export and (ii) the export destination. Policy implications emerging from these conclusions are presented.

Exchange rate volatility, prices and trade flows

1991 ◽  
Vol 55 (1) ◽  
pp. 25-38 ◽  
Author(s):  
Giorgia Giovannetti
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Trade Flows

Exchange Rate Volatility in Emerging Markets:The Chilean Case

2007 ◽  
pp. 87-100
Author(s):  
Juan R. Castro
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Regime ◽  
External Debt ◽  
Exchange Rate Volatility ◽  
Arch Model ◽  
Macroeconomic Shocks ◽  
Domestic Debt ◽  
Domestic Credit ◽  
The Face ◽  
The Exchange Rate

The document conducts an empirical investigation on the volatility of the Chilean exchange rate regime, using a model of Objective Zones. Through the use of the ARCH model, the document tests the volatility of the exchange rate in the presence of different levels of international reserves and other macroeconomic shocks. The results show that domestic credit, domestic debt and external debt have the greatest impact on the volatility of the variables studied, especially when compared with other fundamental variables. The variance of the exchange rate is heterosedastic but it is not persistent, which implies that the exchange rate is stable, probably when it oscillates between two bands. The volatility of the exchange rate fluctuates to a greater extent in the face of changes in internal and external debt, than with the other variables used.

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