EconPapers    
Economics at your fingertips  
 

Exchange rate volatility and trade flows: evidence from the European Union

Nikiforos Laopodis

Global Business and Economics Review, 1999, vol. 1, issue 2, 172-202

Abstract: The paper investigates the issue of whether exchange rate volatility has any significant adverse effects on the trade volume between several European Union countries and Germany over the 1979-1998 period. The measure for exchange rate volatility is obtained from an Exponentially Generalized Auto-Regressive Conditionally Heteroskedastic (EGARCH) model. The results indicated that short-run volatility did not have any deleterious effects on the volume of bilateral trade despite the former's noticeable increase or, at least, persistence for most of the exchange rates. Further, the findings suggested that Spain's and Portugal's participation in, and the exits of the United Kingdom and Italy from, the ERM have not exerted any (statistically) significant negative effects on the trade flows.

Keywords: exchange rate volatility; trade flows; European Union; trade volume; Germany; bilateral change. (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=6144 (text/html)
Access to full text is restricted to subscribers.

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:ids:gbusec:v:1:y:1999:i:2:p:172-202

Access Statistics for this article

More articles in Global Business and Economics Review from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker (informationadministrator5@inderscience.com).

 
Page updated 2025-01-22
Handle: RePEc:ids:gbusec:v:1:y:1999:i:2:p:172-202