The effects of real exchange rate misalignment and real exchange volatility on exports

Diallo, Ibrahima Amadou (2011): The effects of real exchange rate misalignment and real exchange volatility on exports.

Abstract

This paper uses panel data cointegration techniques to study the impacts of real exchange rate misalignment and real exchange rate volatility on total exports for a panel of 42 developing countries from 1975 to 2004. The results show that both real exchange rate misalignment and real exchange rate volatility affect negatively exports. The results also illustrate that real exchange rate volatility is more harmful to exports than misalignment. These outcomes are corroborated by estimations on subsamples of Low-Income and Middle-Income countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: real effective exchange rate; misalignment; volatility; exports; pooled mean group estimator
• Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; F - International Economics > F3 - International Finance > F31 - Foreign Exchange

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