Three decades of export competitiveness literature: systematic review, synthesis and future research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Justin Paul ◽  
Rahul Dhiman
Keyword(s):  
Real Effective Exchange Rate ◽  
Future Research ◽  
Subject Field ◽  
Content Type ◽  
Future Research Agenda ◽  
Capital Productivity ◽  
Export Competitiveness ◽  
Effective Exchange ◽  
The Subject ◽  
Effective Exchange Rate

PurposeThis review has two purposes: (1) to systematically analyse the literature on export competitiveness (EC) and (2) to provide an overview of various determinants and the methodological trends in the subject field, making it possible to develop a roadmap for future researchers.Design/methodology/approachThe systematic literature review (SLR) method was employed in this paper. The authors have covered three decades of research articles published in Scopus listed journals between 1991 and 2020. The determinants of EC are synthesized and widely used theories, and methodologies are identified and classified. The authors have also provided directions for future research.FindingsThe key determinants identified are labour and capital productivity, labour costs, exchange and real effective exchange rate (REER), domestic gross domestic product (GDP), trade liberalization and barriers. The findings reveal that EC is now a scientific measure, since the studies in this subject field have moved towards measuring EC and its determinants.Originality/valueThere has been no comprehensive review in this area exploring the theories, context, constructs and methodologies until now. Therefore, this review provides deep insights into the topic and also offers a unified picture of the subject field.

scholarly journals Impacts of the monetary policy on the exchange rate: case study of Vietnam

2019 ◽  
Vol 26 (2) ◽  
pp. 220-237
Author(s):  
Van Anh Pham
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Real Effective Exchange Rate ◽  
Content Type ◽  
Effective Exchange ◽  
Quantitative Results ◽  
The Exchange Rate ◽  
The Interest Rate ◽  
Effective Exchange Rate

Purpose The purpose of this paper is to evaluate and analyze impacts of the monetary policy (MP) – money aggregate and interest rate – on the exchange rate in Vietnam. Design/methodology/approach The study uses data over the period of 2008–2018 and applies the vector autoregression model, namely recursive restriction and sign restriction approaches. Findings The main empirical findings are as follows: a contraction of the money aggregate significantly leads to the real effective exchange rate (REER) depreciating and then appreciating; a tightening of the interest rate immediately causes the REER appreciating and then depreciating; and both the money aggregate and the interest rate strongly determine fluctuations of the REER. Originality/value The quantitative results imply that the MP affects the REER considerably.

Portugal’s stable economic performance should continue

2020 ◽  
Keyword(s):  
Export Market ◽  
Real Effective Exchange Rate ◽  
Bond Yields ◽  
Content Type ◽  
China Trade ◽  
Effective Exchange ◽  
Trade War ◽  
Effective Exchange Rate ◽  
Fiscal Prudence ◽  
Economic Outlook

Subject Portugal's economic outlook. Significance Portugal has been one of the best performing euro-area economies since 2016. Last year the economy grew by 2%, while the Bank of Portugal forecasts growth to remain stable at 1.7% in 2020 and 1.6% in 2021. The post-crisis turnaround continues to be powered by strong foreign direct investment (FDI) and exports, including tourism, and boosted by a decline in the real effective exchange rate. Impacts The threat of a global trade war has reduced following the 'phase one' US-China trade deal in January. A likely slowdown in the Spanish economy, Portugal’s largest export market, could weaken Portuguese growth. Portugal’s centre-left government will prioritise fiscal prudence this term, which will likely reduce the spread on bond yields.

Exploring exchange rate based policy coordination in SADC

2016 ◽  
Vol 33 (4) ◽  
pp. 576-594 ◽  
Author(s):  
Mulatu Fekadu Zerihun ◽  
Martinus C. Breitenbach ◽  
Francis Kemegue
Keyword(s):  
Exchange Rate ◽  
Policy Coordination ◽  
Policy Implications ◽  
Real Effective Exchange Rate ◽  
Monetary Integration ◽  
Content Type ◽  
Structural Variables ◽  
Effective Exchange ◽  
The Exchange Rate ◽  
Effective Exchange Rate

Purpose This paper explores the possibilities for policy coordination in the Southern African Development Community (SADC) as well as real effective exchange rate (REER) stability as a prerequisite towards sensible monetary integration. The underlying hypothesis goes with the assertion that countries meeting optimum currency area conditions face more stable exchange rates. Design/methodology/approach The quantitative analysis encompasses 12 SADC member states over the period 1995-2012. Correlation matrixes, dynamic pooled mean group (PMG) and mean group (MG) estimators and real effective exchange rate (REER) and real exchange rate (RER) equilibrium and misalignment analysis are carried out to arrive at the conclusions. Findings The study finds that the structural variables used in the PMG model show that there are common fiscal and monetary policy variables that determine REER/RER in the region. However, the exchange rate equilibrium misalignment analysis reveals that SADC economies are characterised by persistent overvaluation at least in the short term. This calls for further sustained policy coordination in the region. Practical implications The findings in this paper have important policy implications for economic stability and for the attempt of policy coordination in SADC region for the proposed monetary integration to proceed. Originality/value This study is the first attempt that relates the exchange rate as a policy coordination instrument among SADC economies.

Some dynamic macroeconomic perspectives for India’s economic growth

2020 ◽  
Vol 12 (4) ◽  
pp. 641-658
Author(s):  
Matiur Rahman ◽  
Anisul Islam
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Crude Oil ◽  
Real Effective Exchange Rate ◽  
Crude Oil Price ◽  
Content Type ◽  
Long Run ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

Purpose The purpose of this paper is to study impacts of changes in crude oil price, money supply, fiscal deficit and effective exchange rate on India’s economic growth (expressing all variables in real term). Design/methodology/approach First, a simple macroeconomic model is formulated to this effect. Next, linear autoregressive distributed lag procedure and vector error-correction model are applied for growth empirics. Annual data are used from 1977 through 2015. Findings Rises in real crude oil price and monetized real fiscal deficits have negative short-run and long-run effects on real economic growth. Increase in real money supply and real effective exchange rate appreciation helps promote real economic growth in both short run and long run. In all cases, there is evidence of net interactive positive feedback effects among the variables in the short run. Real effective exchange rate appreciation dampens exports, but it is helpful to imports of capital goods and crude oil that contribute to economic growth. So, the net effect on the economy may be conjecturally positive. Originality/value To the best of the authors’ knowledge, this paper is unique because of the formulation of macro-economic model pertaining to the topic and its subsequent empirical verification. Moreover, this paper seems more comprehensive than some other studies, cited in the literature review.

A systematic review of responsiveness to develop future research agenda: a TCCM and bibliometric analysis

2020 ◽  
Vol 27 (9) ◽  
pp. 2649-2677
Author(s):  
Deepika Sharma ◽  
Rashi Taggar ◽  
Sunali Bindra ◽  
Sanjay Dhir
Keyword(s):  
Research Agenda ◽  
Selection Criteria ◽  
Design Methodology ◽  
Manufacturing Industry ◽  
Web Of Science ◽  
Future Research ◽  
Content Type ◽  
Future Research Agenda ◽  
Factors Influencing ◽  
The Subject

PurposeThis paper aims to epistemologically extend and explore the present theories from prior research conducted in the area of responsiveness. Furthermore, it determines to benchmark the prominent theories, characteristics, context and methodologies (TCCM) used in the domain since its inception to advance the science and practice of marketing and logistics discipline.Design/methodology/approachA seven-step methodology (SSM) has been introduced to create a comprehensive dataset. Based upon the selection criteria of high-ranked journals and language, the research studies have been retrieved from Scopus, Web of Science, Business Source Complete and journal homepage to avoid the error of exclusion. Moreover, the dataset has been compiled using manual and electronic searches without any limitation of time.FindingsThe search for a suitable dataset retrieved 642 documents by identifying “1969” as the beginning year of research in the subject domain. The analysis found that responsiveness has been prominently studied in the manufacturing industry. The results also advocate responsiveness as the vital antecedent to performance and satisfaction. Frameworks have been proposed with significant propositions for future empirical testing and theory inventiveness by researchers.Originality/valueThe study pioneers its utility for retailers to recognize the firms' inherent abilities and strengths, which can be promoted to create responsiveness more than ever. The analysis results can act as the compelling force to understand the driving power of various factors influencing responsiveness.

Impact of exchange rate movement and macro-economic factors on exports of software and services from India

2016 ◽  
Vol 23 (5) ◽  
pp. 1193-1206 ◽  
Author(s):  
Parijat Upadhyay ◽  
Saikat Ghosh Roy
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Real Effective Exchange Rate ◽  
Domestic Product ◽  
Content Type ◽  
Indian Rupee ◽  
Effective Exchange ◽  
Effective Exchange Rate ◽  
The Impact ◽  
Software Services

Purpose – The information technology (IT) sector in India is the leading exporter from the service sector domain and also is a significant contributor to the overall export kitty of India. The IT sector’s contribution in total Indian exports (merchandise plus services) increased from less than 4 percent in FY1998-1999 to about 25 percent in FY2011-2012 as per IT industry nodal body National Association of Software and Services Companies and the central bank of the country, the Reserve Bank of India (RBI). As this industry earns most of its revenue in foreign currencies it is exposed to the foreign exchange risks. The purpose of this paper is to validate the macro-economic theory that depreciation in domestic currency boosts export as it makes domestic good and services cheaper and appreciation in domestic currency deters export as it makes domestic good and services costlier. The authors are validating this theory for Indian rupee and keeping software services export in the focus. Design/methodology/approach – In this study the authors have done the multiple regression analysis on the obtained time-series data. The research was totally based on the secondary data from Quarter1 (April-June) of FY 2000-2001 to Quarter4 (January-March) of FY 2011-2012. It comprises of data for 48 consecutive quarters. The authors have taken the growth rate, so the final data set consist of data of 47 quarters. The main source of data are published data by RBI. Data have been collected for export of software services, merchandise export, real effective exchange rate, US-dollar-Indian rupee exchange rate, gross domestic product of India and selected countries. Findings – Data analysis leads the authors to the following findings: real effective exchange rate has no significant impact on software services export; US-dollar-Indian rupee exchange rate has no significant impact on software services export; external gross domestic product growth has no significant impact on software services export; and gross domestic product growth of India has no significant impact on software services export. The results obtained from multiple regression analysis are also supported by the results obtained from Granger Causality test. It does not identify any single factor as a major cause of software export. Results shows that the external GDP is having the statistically significant impact on the software export but the low value of R2 denotes that the impact is very low. Originality/value – There are no published studies available which has attempted similar kind of an approach to study using aggregated export data and other macro-economic variables like real effective exchange rate (REER) and GDP growth rate. All previous literatures used REER to measure the impact of the exchange rate on export.

External shocks and output composition: evidence from Nigeria

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Titus Ayobami Ojeyinka ◽  
Dauda Olalekan Yinusa
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Real Effective Exchange Rate ◽  
External Shocks ◽  
Content Type ◽  
Trading Partners ◽  
Effective Exchange ◽  
Exchange Rate Shocks ◽  
Effective Exchange Rate ◽  
The Impact

PurposeThe study investigates the impact of external shocks on output composition (consumption and investment) in Nigeria for the period 1981:Q1– 2018:Q4. Trade-weighted variables from the country's five major trading partners are constructed to capture the impact.Design/methodology/approachThe study employs a block exogeneity open economy structural vector autoregressive (SVAR) analysis in studying the stated relationship.FindingsThe study reveals that external shocks significantly affect consumption and investment in Nigeria. Results from the structural impulse response function suggest that foreign output, real effective exchange rate and foreign interest rate have significant negative effects on consumption and investment. Specifically, results from error variance decomposition show that foreign inflation and real effective exchange rate shocks are major drivers of fluctuations in consumption and investment in Nigeria. Interestingly, the study finds that oil price shock accounts for minor variations in consumption and investment in Nigeria.Research limitations/implicationsThe findings suggest that consumption and investment in Nigeria are substantially and largely driven by external shocks.Practical implicationsThere is need for the monetary authority and the Nigerian government to design appropriate policies to stabilise the naira and salvage the country's exchange rate from unexpected large swings so as to reduce the vulnerability of the economy to external shocks.Originality/valuePrevious studies on external shocks have concentrated on the impact of external shocks on aggregate variables such as output and inflation, while few studies on external shocks in Nigeria capture external shocks through single-country data. This study differs from previous similar studies in Nigeria in two ways. First, the study examines the impact of external shocks on output composition such as consumption and investment. Second, the study captures the impact of external shocks on the two components of gross domestic product (GDP) by constructing trade-weighted variables from Nigeria's five major trading partners.

The volatility of tourism demand and real effective exchange rates: a disaggregated analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laron Delano Alleyne ◽  
Onoh-Obasi Okey ◽  
Winston Moore
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Exchange Rate Volatility ◽  
Real Effective Exchange Rate ◽  
Tourism Demand ◽  
Content Type ◽  
Effective Exchange ◽  
The Usa ◽  
Effective Exchange Rate ◽  
The Impact

Purpose One of the main factors that can impact the cost of holidays to a particular destination is the exchange rate; exchange rate fluctuations impact the overall price of the holiday and should be expected to effect tourism demand. This paper aims to scrutinize the volatility of the real effective exchange rate between the source market relative to the holiday destination and tourism demand volatility, where the influence of disaggregated data is noted. Design/methodology/approach The study uses multivariate conditional volatility regressions to simulate the time-varying conditional variances of international visitor demand and exchange rates for the relatively mature Caribbean tourist destination of Barbados. Data on the country’s main source markets, the UK, the USA and Canada is used, where the decision to disaggregate the analysis by market allows the authors to contribute to policymaking, particularly the future of tourism marketing. Findings The volatility models used in the paper suggests that shocks to total arrivals, as well as the USA and UK markets tend to die out relatively quickly. Asymmetric effects were observed for total arrivals, mainly due to the combination of the different source markets and potential evidence of Butler’s (1980) concept of a tourist area’s cycle of growth. The results also highlight the significance of using disaggregated tourism demand models to simulate volatility, as aggregated models do not adequately capture source market specific shocks, due to the potential model misspecification. Exchange rate volatility is postulated to have resulted in the greater utilization of packaged tours in some markets, while the effects of the market’s online presence moderates the impact of exchange rate volatility on tourist arrivals. Markets should also explore the potential of attracting higher numbers of older tourist, as this group may have higher disposable incomes, thereby mitigating the influence of exchange rate volatility. Research limitations/implications Some of the explanatory variables were not available on a high enough frequency and proxies had to be used. However, the approach used was consistent with other papers in the literature. Practical implications The results from the paper suggest that the effects of exchange rate volatility in key source markets were offset by non-price factors in some markets and the existence of the exchange rate peg in others. In particular, the online presence of the destination was one of those non-price factors highlighted as being important. Originality/value In most theoretical models of tourism demand, disaggregation is not normally considered a significant aspect of the model. This paper contributes to the literature by investigating the impact real effective exchange rate volatility has on tourism demand at a disaggregated source country level. The approach highlights the importance of modeling tourism demand at a disaggregated level and provides important perspective from a mature small island destination.

Diagnosing the curse of natural resources in Kuwait

2018 ◽  
Vol 34 (2) ◽  
pp. 153-171
Author(s):  
Nayef Al-Shammari ◽  
Noura Al-Hossayan ◽  
Mariam Behbehani
Keyword(s):  
Exchange Rate ◽  
Natural Resource ◽  
Inflation Rate ◽  
Resource Curse ◽  
Dutch Disease ◽  
Real Effective Exchange Rate ◽  
Content Type ◽  
Effective Exchange ◽  
Effective Exchange Rate ◽  
The Impact

Purpose The purpose of this paper is to empirically examine the phenomenon of natural resource curse in an oil abundant economy of Kuwait. The study estimates a behavioral equilibrium exchange rate model for Kuwait during the period 1980-2014 to assess the impact of prices and productivity factors on real effective exchange rate. Design/methodology/approach It uses time series econometric techniques, such as unit root tests, Johansen cointegration test, Vector Error Correction Model, and Impulse Response Function, to estimate the model. Findings Unlike the results of the few other studies, the empirical results show a significant impact of the variables, such as balance of trade, economic growth, oil exports, interest rate, and inflation rate, on real effective exchange rate appreciation which indicates the existence of Dutch disease within the Kuwaiti economy. Similarly, the comparative analysis between changes in public expenditure and inflation rate shows the existence of Dutch disease in Kuwait during specific periods of time. Originality/value Natural resource curse or Dutch disease is a widely recognized phenomenon affecting the balance of economic activities in natural resource abundant countries. Symptoms of Dutch disease are perceived in several changes in the economy, particularly on price level, sectorial productivity, employment, and aggregate demand which in the long run worsen the country’s economic position and lower its international competitiveness. Dutch disease is not only a feature of natural resource abundant economies, but also can affect any economy with excessive revenue generating sector or high capital inflows which appreciates country’s exchange rate. However, the examination of Dutch disease in the economy is more important when investigating the impact on oil-producing countries (Apergis et al. 2014; Mohammadi and Jahan-Parvar, 2012; Jahan-Parvar and Mohammadi, 2011). Therefore, scholars studying Dutch disease phenomenon pay greater attention to cases of Dutch disease among oil-producing countries (i.e. Arezki and Ismail, 2013; Van der Ploeg and Venables, 2013; Jahan-Parvar, 2012; Cologni and Manera, 2013).

Dynamics of Algeria’s international reserves

2017 ◽  
Vol 8 (4) ◽  
pp. 410-419
Author(s):  
Mohammad Kashif ◽  
S. Thiyagarajan ◽  
P. Sridharan
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Positive Impact ◽  
Small Sample ◽  
Real Effective Exchange Rate ◽  
International Reserves ◽  
Content Type ◽  
Long Run ◽  
Effective Exchange ◽  
Effective Exchange Rate

Purpose The purpose of this paper is to explore the determinants of international reserves in Algeria using economic growth and real effective exchange rate variables. The paper used quarterly data from 1985Q1 to 2014Q4. Design/methodology/approach The study employs autoregressive distributed lag (ARDL) approach known as the bounds testing method. The ARDL technique works well for small sample studies also. The current study assesses the influence of economic growth and real effective exchange rates on international reserves in Algeria by evaluating both short-run and long-run dynamics. Findings The study establishes a long-run relationship between international reserves, economic growth and real effective exchange rate. It also reveals that economic growth has a positive impact on international reserves while real effective exchange rate shows a negative effect. Originality/value This paper tries to provide a complete picture of the determinants of international reserves in Algeria. Foreign trade policy makers of Algeria can use the model estimated here to draw pertinent policies regarding international reserves.

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