Exchange Rate Volatility and Trade Flows of the U.K. in 1990s*

Hae-du Hwang and Jin-woo Lee

International Area Studies Review, 2005, vol. 8, issue 1, 173-182

Abstract: This paper examines the impact of exchange rate volatility on trade flows in the U.K. over the period 1990–2000. According to the conventional approach, exchange rate volatility clamps down trade volumes. This paper, however, identifies the existence of a positive relationship between exchange rate volatility and imports in the U.K. in the 1990s by using a bivariate GARCH-in-mean model. It highlights a possible emergence of a polarized version with conventional proposition that ERV works as an impediment factor on trade flows.

Keywords: exchange rate volatility; volatility cluster; GARCH-M; trade flow (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/223386590500800109 (text/html)

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:sae:intare:v:8:y:2005:i:1:p:173-182

DOI: 10.1177/223386590500800109

Access Statistics for this article

More articles in International Area Studies Review from Center for International Area Studies, Hankuk University of Foreign Studies
Bibliographic data for series maintained by SAGE Publications ().