scholarly journals Unanticipated Exchange Rate Risk And U.S. Imports

2011 ◽  
Vol 10 (4) ◽  
pp. 19
Author(s):  
Abdul H. Sukar
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Error Correction ◽  
Negative Impact ◽  
Exchange Rate Risk ◽  
Controversial Issues ◽  
Rate Risk ◽  
Significant Negative Impact ◽  
The Exchange Rate ◽  
The Relationship

<span>The effect of exchange rate risk on trade is one of the more controversial issues in international trade. This paper uses cointegration and error-correction approach to investigate the relationship between unanticipated exchange rate risk and U.S. imports over the period 1974:1-1992:4. The major finding of this study is that the exchange rate risk has a significant negative impact on U.S. imports.</span>

scholarly journals Exchange Rate Risk Analysis Based on Firm Data: A Global Value Chain Perspective

2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Mimi Ning ◽  
Jianhong Qi
Keyword(s):  
Exchange Rate ◽  
Value Chain ◽  
Risk Model ◽  
Exchange Rate Risk ◽  
Global Value Chain ◽  
Rate Risk ◽  
The Exchange Rate ◽  
Firm Data ◽  
Backward Linkages ◽  
The Relationship

This paper investigates whether firms’ participation in the global value chain (GVC) weakens the exchange rate risk and its mechanism. Based on Powers and Riker’s (2013) expanding exchange rate risk model, this paper matches data from China’s refined input-output table, the customs database, and the industrial enterprise database from 2002 to 2009 to measure the firms’ GVC forward linkages and backward linkages and therefore empirically tests the relationship between participation in the GVC and the exchange rate risk. The results show that participation in the GVC reduces firms’ exchange rate risk through a “comovement effect” for forward linkages and a “hedging effect” for backward linkages; differences in a firm’s position in the GVC affect the extent of reduction in the exchange rate risk. Encouraging firms to participate in the GVC and strengthening GVC relationship with high-income countries in particular play an important role in minimizing the exchange rate risk.

Exchange rate risk and international trade: The role of third country effect

2018 ◽  
Vol 167 ◽  
pp. 152-155 ◽  
Author(s):  
Cengiz Tunc ◽  
M. Nihat Solakoglu ◽  
Senol Babuscu ◽  
Adalet Hazar
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Exchange Rate Risk ◽  
Rate Risk ◽  
Country Effect

scholarly journals The Relationship between International Trade and Economic Growth

2019 ◽  
Vol 1 (02) ◽  
pp. 112-123
Author(s):  
Putri Dewi Purnama ◽  
Ming Hung Yao
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Exchange Rate ◽  
Direct Investment ◽  
Positive Impact ◽  
The Exchange Rate ◽  
Asean Countries ◽  
The Relationship

The aim of this study is to find the relationship between international trade and economic growth in ASEAN countries. Three independent variables used to measure the economic growth include international trade, the exchange rate, and foreign direct investment. This study employs a pedroni panel cointegration test to examine the data from 2004 to 2015. The results show that there is a long term cointegrated relationship between international trade and economic growth in the ASEAN countries. International trade and foreign direct investment also have a long term, positive impact on economic growth. Meanwhile, the exchange rate also has a long term, negative influence on the economic growth. In addition, there is an indirect relationship and bidirectional causalities between the GDP and international trade, as well as between the GDP and the exchange rate. On the other hand, there is a direct relationship and a bidirectional causality between international trade and the exchange rate. The FDI leads GDP, international trade, and exchange rates. Our results suggest that international trade must be supported by government policies that aim to enhance the financing of new investment for economic growth.

Exchange-Rate Exposure of Taiwanese Exporting Firms

2000 ◽  
Vol 03 (02) ◽  
pp. 201-233 ◽  
Author(s):  
Chaoshin Chiao ◽  
Ken Hung
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Firm Size ◽  
Exchange Rate Risk ◽  
Time Varying ◽  
Exporting Firms ◽  
Exchange Rate Exposure ◽  
Rate Risk ◽  
The Exchange Rate ◽  
The Government

The purpose of this paper is to investigate the exchange-rate exposure of Taiwanese exporting firms. Particularly, we consider the effects of the timing of the three liberalization events through which the government carried out explicit policies to open gradually its foreign exchange and stock markets. First, we cannot corroborate that most exporting firms are individually exposed to exchange-rate risk. However, we cannot reject that the exporting firms are jointly exposed to exchange-rate risk in all sub-periods. Second, the timing of the three liberalization events greatly affects the exchange-rate exposure of Taiwanese exporting firms. Finally, the determinants of possibly time-varying exchange-rate exposure of exporting firms are exports-to-sales ratio, firm size, and the timing of the three liberalization events.

Exchange Rate Risk Estimates of the Foreign Contracted Projects Based on the Model of VaR

2014 ◽  
Vol 638-640 ◽  
pp. 2327-2331
Author(s):  
Li Zhu Zhao ◽  
Rui Qiang Bai ◽  
Yu Peng Shao
Keyword(s):  
Exchange Rate ◽  
Rapid Development ◽  
Simulation Method ◽  
Engineering Industry ◽  
Exchange Rate Risk ◽  
Rate System ◽  
Historical Simulation ◽  
Rate Risk ◽  
Floating Exchange Rate ◽  
The Exchange Rate

China implements a floating exchange rate system after reforming the exchange rate mechanism in 2005. So far, nearly eight years, the RMB against the U.S. dollar increased from 8.2:1 to 6.1:1. Exchange rate risk of China's foreign contracted engineering industry has become a serious problem in the rapid development of the industry situation, this paper established exchange rate forecasting model base on the model of VaR through analysis the daily average exchange rate from July 22, 2005 to September 30, 2013, and estimate the rate of return by using the variance - covariance, historical simulation method, providing a theoretical basis for avoiding the exchange rate risk of China's foreign contracted projects.

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