The relationship between REER and trade flows in the context of the equilibrium exchange rate

Reimo Juks ()

No 2003-9, Bank of Estonia Working Papers from Bank of Estonia

Abstract: The paper focuses on the time-series analysis of the traditional trade equations. The results from the cointegration, ARDL and Granger causality analyses of trade elasticities cast some doubt on the usefulness of the internal-external balance approach to the equilibrium exchange rate. The long-run impact of the REER on trade flows turned out to be statistically insignificant, being independent of method and specification of the model employed. The latter implies a secondary role for the REER in achieving a sustainable position of external balance.

Pages: 20 pages
Date: 2003-11-11, Revised 2003-11-11
New Economics Papers: this item is included in nep-fmk, nep-ifn and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published

Downloads: (external link)
http://www.eestipank.info/pub/en/dokumendid/publik ... 3/_9_2003/wp_903.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.eestipank.info:80 (nodename nor servname provided, or not known)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eea:boewps:wp2003-09

Ordering information: This working paper can be ordered from
Estonia bld. 13, 15095 Tallinn, ESTONIA

Access Statistics for this paper

More papers in Bank of Estonia Working Papers from Bank of Estonia Estonia bld. 13, 15095 Tallinn, ESTONIA. Contact information at EDIRC.
Bibliographic data for series maintained by Peeter Luikmel ().