Effects of Exchange Rate on Value-Added International Trade

2018 ◽  
Author(s):  
Myoung Shik Choi
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Value Added

scholarly journals The Effects of the Exchange Rate on Value-Added International Trade to Enhance Free Trade Sustainability in GVCs

2019 ◽  
Vol 11 (10) ◽  
pp. 2740 ◽  
Author(s):  
Myoung Shik Choi ◽  
Bongsuk Sung ◽  
Woo-Yong Song
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Free Trade ◽  
Bilateral Trade ◽  
Value Added ◽  
Policy Implications ◽  
Negative Effect ◽  
The Exchange Rate ◽  
Positive Effect

This study investigates the role of value-added bilateral trade focused on global value chains to achieve sustainable economic development. Our findings address trade policy implications that help to mitigate the global imbalances and exchange rate conflicts. These policies are expected to provide a competitive advantage that can be crucial to the sustainability of free trade. We apply traditional trade models to the value-added framework to examine the effects on value-added trade. Empirically, we investigate the bilateral value-added trade for recent years. Our major findings are that currency devaluation has a positive effect on value-added exports but has a negative effect on gross exports because of the effect on intermediate goods trading dominating the effect on international trade, i.e., the effect on foreign content of intermediate imports dominating the effect on the domestic content of exports. The same effect applies to imports. Also, we confirm that foreign income has a positive effect on exports and value-added exports, and domestic income has a positive effect on imports and value-added imports. However, their effects on trade balance are not consistent. Our major findings imply that the analysis of value-added trade can best contribute to the sustainability of global free trade by considering trade policies as a result of reflecting the easing of the global imbalance and the exchange rate war.

scholarly journals A new method for calculating mirror data asymmetry in international trade

2020 ◽  
Vol 11 (4) ◽  
pp. 637-656
Author(s):  
Iwona Markowicz ◽  
Paweł Baran
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Value Added ◽  
Trade Data ◽  
Trade Relations ◽  
Quantity Index ◽  
Insurance Costs ◽  
Economic Analyses ◽  
Turn Over ◽  
Better Than

Research background: Some statistics are of a bilateral nature. This is how foreign trade data is organized. They are recorded both in the supplier and recipient countries, hence they are called mirror data. The data recorded at both trading partner countries are not the same for different reasons. Such differences between data on the same groups of transactions are often referred to as the asymmetry of mirror data. The information about the value of the flows of goods are of great importance in economic analyses and therefore their quality is particularly important. Purpose of the article: The aim of this paper is to present a new measure of data asymmetry ? the aggregated quantity index with value-based weights. Methods: The proposed measure combines the quantity and the value of turn-over in individual trade relations. Such a measure makes it possible to eliminate basic deficiencies in value-based measures, while considering the specificity of trade in individual countries. The proposed measure of data asymmetry was confronted with several measures present in the literature and previously used by the Authors. The numerical example uses Comext data on intra-Community trade in 2017 provided by Eurostat. Findings & Value added: The proposed measure performs better than all the previously used data asymmetry indices. It is to some extent immune to exchange rate differences and inconsistencies resulting from the inclusion of transport and insurance costs in the value of goods. In addition, it gives lower weights to unimportant trade directions than other data asymmetry indices. Since the new index has proved to be better than the measures previously used, it is worth applying to those trade relations where the data are not de-rived from customs documents, but from declarations made by businesses, as in the case of intra-Community trade.

International trade: Research of the reasons for the fall

2019 ◽  
pp. 79-91 ◽  
Author(s):  
V. S. Nazarov ◽  
S. S. Lazaryan ◽  
I. V. Nikonov ◽  
A. I. Votinov
Keyword(s):  
Growth Rate ◽  
International Trade ◽  
Exchange Rate ◽  
Global Economy ◽  
Structural Changes ◽  
Global Value Chains ◽  
Value Chains ◽  
Negative Contribution ◽  
Basic Commodity ◽  
The Impact

The article assesses the impact of various factors on the growth rate of international trade. Many experts interpreted the cross-border flows of goods decline against the backdrop of a growing global economy as an alarming sign that indicates a slowdown in the processes of globalization. To determine the reasons for the dynamics of international trade, the decompositions of its growth rate were carried out and allowed to single out the effect of the dollar exchange rate, the commodities prices and global value chains on the change in the volume of trade. As a result, it was discovered that the most part of the dynamics of international trade is due to fluctuations in the exchange rate of the dollar and prices for basic commodity groups. The negative contribution of trade within global value chains in 2014 was also revealed. During the investigated period (2000—2014), such a picture was observed only in the crisis periods, which may indicate the beginning of structural changes in the world trade.

The impact of exchange rate on price and export of agricultural production

2018 ◽  
Vol 1 (4) ◽  
pp. 9-18
Author(s):  
Rasulov Tulkin Sattarovich ◽  
Khushvaktov Kuvonchbek Ravshanovich
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Agricultural Production ◽  
Global Economy ◽  
Agricultural Economics ◽  
Agricultural Products ◽  
Pivotal Role ◽  
Price Formation ◽  
International Trade Laws ◽  
The Impact

In today’s world of swiftly increasing global economy and continuously changing international trade laws and technology exchange rate plays a pivotal role in the production, price formation, export and import of agricultural products. For many years exchange rate as an integral part of agricultural economics has been ignored. The present study was intended to investigate exchange rate as an impacting factor on the agricultural production. It also considers the researches that have been carried about the impact of the exchange rate on prices and export of agricultural products, theirs analyses and how much impact it has in the situation of Uzbekistan.

The Impact of Real Exchange Rate on International Trade: Evidence From Panel Structural VAR Model

2020 ◽  
Author(s):  
Caglayan Aslan ◽  
Oguzhan Cepni ◽  
Selcuk Gul
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Structural Var ◽  
Var Model ◽  
The Impact

Open Door System and Endogenous Growth in Indian Economy: An Empirical Analysis on the Role of Human Capital and R&D in Explaining Industrial Productivity

2021 ◽  
Vol 46 (1) ◽  
pp. 24-37
Author(s):  
Arjun K. ◽  
Sanjay Kumar ◽  
A. Sankaran ◽  
Mousumi Das
Keyword(s):  
Human Capital ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Endogenous Growth ◽  
Value Added ◽  
Capital Formation ◽  
Knowledge Capital ◽  
Test Technique ◽  
Long Run ◽  
The Impact

The present study investigates the impact of human capital, knowledge capital which is a function of human capital, and real exchange rate scenario in explaining long-run industrial total factor productivity (TFP) from 1980 to 2015 on the theoretical basis of the open endogenous growth model. The variables employed in the contemporary study include manufacturing value added (MNVA) as industrial output measure, gross fixed capital formation (GFCF) as a measure of capital and labour input which is measured using employment data. Gross enrolment ratio (GER) is taken as a measure for human capital formation, expenditure on research and development (R&D) as a proxy for knowledge capital, and real exchange rate indicates global economic shocks. The study involves estimating TFP for Industrial Sector during the post-liberalization period by employing Cobb-Douglas production function. The ARDL bounds test technique for cointegration revealed long-run relation among the varying factors studied. The Toda-Yamamoto causality test concluded bi-directional causality running between, R&D expenditure and Industrial TFP which sends a strong signal to the policymakers for a well-framed long-term integrated approach for human & knowledge capital formation which will act as a strong impetus for manufacturing firms to come up in terms of augmenting production and productivity and expanding foreign market horizon. JEL Classification: D24, E2, J24

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