The impact of exchange rate volatility on trade: The evidence from Russia

Irina Tarasenko ()
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Irina Tarasenko: World Trade Organization, Geneva, Switzerland

Russian Journal of Economics, 2021, vol. 7, issue 3, 213-232

Abstract: This paper analyzes the effects of exchange rate volatility on exports and imports of a range of goods between Russia and its 70 trading partners from 2004 until 2018. The goods in question fall into eight product categories, as follows: (i) agricultural raw materials­; (ii) chemicals; (iii) food; (iv) fuels; (v) manufactured goods; (vi) ores and metals­; (vii) textiles; and (viii) machinery and transport equipment. Exchange rate volatility­ is measured using the standard deviation of the first difference in the logarithmic daily nominal exchange rate. The paper concludes that exchange rate volatility had a negative impact on exports of agricultural raw materials, manufactured goods, and machinery and transport equipment. In contrast, it was found to have a positive and significant impact on trade in fuels and imports of chemicals and textiles.

Keywords: exchange; rate; volatility; gravity; model; instrumental; variable; exports; imports (search for similar items in EconPapers)
JEL-codes: E0 F14 O24 Q02 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:arh:jrujec:v:7:y:2021:i:3:p:213-232

DOI: 10.32609/j.ruje.7.57933

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