Exchange Rate Changes and Trade Flows in East Asia

Jerome Terhemba Andohol, Victor Ushahemba Ijirshar, Oluwafemi David Ogunjemilua and Solomon Gbaka
Additional contact information
Jerome Terhemba Andohol: Benue State University, Makurdi
Victor Ushahemba Ijirshar: Benue State University, Makurdi
Oluwafemi David Ogunjemilua: University of Missouri, Columbia
Solomon Gbaka: Benue State University, Makurdi

Scientific Annals of Economics and Business (continues Analele Stiintifice), 2024, vol. 71, issue 1, 129 - 153

Abstract: This study investigates the impact of exchange rate changes on trade flows among East Asian countries spanning 1990–2021, using pooled mean group estimator, within the framework of panel data analysis. Findings indicate that world income, trade openness, and the real effective exchange rate strongly affect trade balance, and that the real depreciation of exchange rate exerts strong positive benefits on trade flows in the long run. The study also infers that trade openness and real effective exchange rate had strong influence on exports and imports for Hong Kong, Japan, and South Korea in the short run. However, the depreciation of their currencies discouraged imports in the long run. More so, world income strongly affects the exports and imports of Hong Kong and Japan, while trade openness is advantageous for all the countries. The study recommends the continuation of the prevailing trade-growth pattern, and the existing bilateral pegged exchange rate policy with their trading partners.

Keywords: asymmetry; East Asia; exchange rate; trade flows. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://saeb.feaa.uaic.ro/index.php/saeb/article/view/2417 (application/pdf)

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:aic:saebjn:v:71:y:2024:i:1:p:129-153:n:2

DOI: 10.47743/saeb-2024-0007

Access Statistics for this article

More articles in Scientific Annals of Economics and Business (continues Analele Stiintifice) from Alexandru Ioan Cuza University, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Sireteanu Napoleon-Alexandru ().