Exchange Rate Volatility as a Barrier to Trade: New Methodologies and Recent Evidence

Daria Taglioni ()

Economie Internationale, 2002, issue 1Q-2Q, pages 227-259

Abstract: The analysis of the border effect in a multi-currency framework reveals that volatility accounts for an important part of the border effect in Europe. This paper proposes an explanation of why this methodology yields robust results of the negative effects of volatility on trade, contrary to a three decades-old literature that is characterised by weak and controversial results.

Keywords: Exchange Rate Volatility; Trade; Gravity; Border; Sector (search for similar items in EconPapers)
JEL-codes: F12 F15 F17 (search for similar items in EconPapers)
Date: 2002
View citations in EconPapers

Downloads: (external link)
http://www.cepii.fr/anglaisgraph/publications/economieinter/rev8990/rev8990h.htm (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: http://EconPapers.repec.org/RePEc:cii:cepiei:2002-1t-2th

Access Statistics for this article

More articles in Economie Internationale from CEPII research center
Contact information at EDIRC.
Series data maintained by ().