More documents from Ćorić, Bruno; Pugh, Geoffrey Thomas
More documents from Applied Economics

Export to your Reference Manger

Please Copy & Paste



Bookmark and Share

The effects of exchange rate variability on international trade: a Meta-Regression Analysis

[journal article]

Ćorić, Bruno; Pugh, Geoffrey Thomas

fulltextDownloadDownload full text

(663 KByte)

Citation Suggestion

Please use the following Persistent Identifier (PID) to cite this document:

Further Details
Abstract The trade effects of exchange rate variability have been an issue in international economics for the past 30 years. The contribution of this paper is to apply meta-regression analysis (MRA) to the empirical literature. On average, exchange rate variability exerts a negative effect on international trade. Yet MRA confirms the view that this result is highly conditional, by identifying factors that help to explain why estimated trade effects vary from significantly negative to significantly positive. MRA evidence on the pronounced heterogeneity of the empirical findings may be instructive for policy: first, by establishing that average trade effects are not sufficiently robust to generalise across countries; and, second, by suggesting the importance of hedging opportunities - hence of financial development - for trade promotion. For the practice of MRA, we make a case for checking the robustness of results with respect to estimation technique, model specification and sample.
Document language English
Publication Year 2008
Page/Pages p. 2631-2644
Journal Applied Economics, 42 (2008) 20
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)