Effect of exchange rate volatility on industry trade flows between Malaysia and China

2013 ◽  
Vol 23 (5) ◽  
pp. 626-655 ◽  
Author(s):  
Abdorreza Soleymani ◽  
Soo Y. Chua
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Trade Flows ◽  
Industry Trade

Exchange-rate volatility and Malaysian-Thai bilateral industry trade flows

2017 ◽  
Vol 44 (1) ◽  
pp. 99-114 ◽  
Author(s):  
Muhammad Aftab ◽  
Karim Bux Shah Syed ◽  
Naveed Akhter Katper
Keyword(s):  
Exchange Rate ◽  
Bilateral Trade ◽  
Exchange Rate Regime ◽  
Exchange Rate Volatility ◽  
Negative Influence ◽  
Trade Flows ◽  
Extensive Literature ◽  
Content Type ◽  
Industry Trade ◽  
The Exchange Rate

Purpose After the fall of fix exchange rate regime in early 1970s, the nexus between the exchange rate volatility and trade flows has been of a great interest to the policy makers and researchers. Resultantly an extensive literature is available on the topic. However, the research findings are inconclusiveness so far. The purpose of this paper is to examine the exchange-rate volatility and bilateral industry trade link between the two important countries of Southeast Asia, i.e. Malaysia and Thailand. Design/methodology/approach This study employs Generalized Autoregressive Conditional Heteroskedasticity (GARCH) (1, 1) to measure exchange rate volatility and autoregressive distributed lag (ARDL) model to study the relationship between exchange rate volatility and trade flows. ARDL approach is suitable to accommodate the mix cases (i.e. stationary and first difference stationary). The paper considers 62 Malaysian exporting and 60 Malaysian importing industries with Thailand over the monthly period 2000-2013. Findings Findings suggest the influence of exchange-rate volatility on the trade flows in a limited number of industries. Large industries like instruments and apparatus experience negative influence from exchange-rate volatility. Originality/value Past literature continued to be inconclusiveness on the nexus between exchange-rate volatility and trade flows due to its over-reliance on the aggregated data. Besides, the past studies are more based on quarterly or yearly frequency data. These issues contribute to the aggregation bias. This research focusses on a country bilateral trade pair, using industry level disaggregated monthly data. Such research is rare in Malaysian-Thai bilateral trade context. This study uses a suitable estimation approach and also draws valuable implications.

The Effects of Exchange Rate Volatility on U.S.-Chilean Industry Trade Flows

2015 ◽  
Vol 61 (4) ◽  
pp. 353-366
Author(s):  
Mohsen Bahmani-Oskooee, ◽  
Hanafiah Harvey, ◽  
Scott W. Hegerty
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Trade Flows ◽  
Industry Trade

scholarly journals Exchange Rate Volatility and Trade Flows

2017 ◽  
Vol 1 (3) ◽  
Author(s):  
Fiscaoeconomia Dergi Hesabı
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Trade Flows

Nexus between Exchange Rate Volatility and Trade Flows in Nigeria

2021 ◽  
Author(s):  
Victor Ijirshar ◽  
Hilary Eshidenang Ushie ◽  
Agya Adi ◽  
Florence Dooshima Bundepuun ◽  
Uchenna Udoji
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Trade Flows

Exchange Rate and Industry-Level Energy Import

2021 ◽  
pp. 71-86
Author(s):  
Abdul Sahib ◽  
Sergey Prosekov
Keyword(s):  
Exchange Rate ◽  
Supply And Demand ◽  
Exchange Rate Volatility ◽  
Trade Flows ◽  
Level Energy ◽  
Rate System ◽  
Domestic Prices ◽  
Floating Exchange Rate ◽  
Exchange Rate System ◽  
The Impact

After the Bretton Woods exchange rate system in 1973, the free-floating exchange rate, the rate determined by the forces of supply and demand, began, which developed an interest in the area of many researchers to investigate, theoretically and empirically, the impact of exchange rate volatility on the world trade flows. There are two channels, direct and indirect, through which the change in exchange rate affects domestic prices. Under the direct channel, a fall in exchange rate leads to increase in imports as well as increases the prices of inputs in domestic currency. Secondly, under the indirect channel, a decline in the exchange rate triggers the availability of domestic goods to foreign buyers at a cheaper rate, and the demand for domestic products increased. Thus, the change in exchange rate affects trade flows either positively or negatively.

Asymmetric Exchange Rate Effects on Cross-Border Freight Flows between the United States and Canada

2020 ◽  
Vol 2674 (4) ◽  
pp. 348-361
Author(s):  
Junwook Chi
Keyword(s):  
Exchange Rate ◽  
Linear Models ◽  
Bilateral Trade ◽  
Nonlinear Models ◽  
Exchange Rate Volatility ◽  
The United States ◽  
Trade Flows ◽  
Asymmetric Effects ◽  
Cross Border ◽  
Long Run

This paper investigates possible asymmetric influences of the exchange rate on cross-border freight flows between the U.S.A. and Canada. Linear and nonlinear autoregressive distributed lag models are used to test for the existence of long-run asymmetric effects of 1) currency appreciation and depreciation and 2) exchange rate volatility changes on trade flows by truck, rail, air, vessel, and pipeline. This paper provides evidence that both currency value and exchange rate volatility affect the U.S.–Canada freight flows in an asymmetric manner. The long-run results of the nonlinear models show that exchange rate is found to be significantly associated with the bilateral trade flows between the U.S.A. and Canada. Exchange rate volatility tends to be significantly associated with trade flows in the nonlinear models, while its effects are insignificant in most cases in the linear models. These findings suggest that the conventional linear specification may mislead the asymmetric effects of exchange rate uncertainty on cross-border freight flows. It is also found that exchange rate sensitivities of U.S.–Canada trade flows by transport mode can differ significantly from those of aggregate trade flows. The information derived from disaggregate trade data can be useful for traders and shippers to develop a long-term strategic plan for infrastructure investment and service expansion.

Sign in / Sign up

Export Citation Format

Share Document