On the impact of exchange rate volatility on Tunisia’s trade with 16 partners: an asymmetry analysis

Mohsen Bahmani-Oskooee and Ridha Nouira ()
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Ridha Nouira: Monastir University

Economic Change and Restructuring, 2020, vol. 53, issue 3, No 1, 357-378

Abstract: Abstract Exchange rate uncertainty measured by its volatility is said to affect trade flows in either direction. A limited number of recent studies show that the response of trade flows to exchange rate volatility could be asymmetric, mostly due to change in traders’ expectations. In this paper, we test the symmetric and asymmetric effects of exchange rate volatility on Tunisia’s bilateral trade with each of its 16 partners. We find that Tunisia’s trade flows to each partner are affected asymmetrically in the short run but not in the long run. In almost half of the sample, the long-run effects were symmetric.

Keywords: Exchange rate volatility; Tunisia; Sixteen trading partners; Asymmetry analysis (search for similar items in EconPapers)
JEL-codes: F14 F31 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (12)

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DOI: 10.1007/s10644-019-09250-y

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