How sensitive are the U.S. inpayments and outpayments to real exchange rate changes: an asymmetry analysis

Mohsen Bahmani-Oskooee and Hadiseh Fariditavana ()
Additional contact information
Hadiseh Fariditavana: The University of Southern Mississippi

International Economics and Economic Policy, 2019, vol. 16, issue 4, No 4, 619-647

Abstract: Abstract Previous studies that assessed the impact of exchange rate changes on a country’s inpayments and outpayments assumed that such effects are symmetric. The evidence from the literature reveals that import and export prices react to exchange rate changes in an asymmetric manner. This implies that export earnings and payments for imports should also react to exchange rate changes in an asymmetric manner. We demonstrate this by using Shin et al.’s (2014) nonlinear ARDL approach and inpayments and outpayments of the U.S. with her 15 trading partners. We find evidence of short-run as well as long-run asymmetric effects in more than half of the models, though the findings are found to be partner specific.

Keywords: The U.S.; Inpayments; Outpayments; Value of the dollar; Asymmetry analysis (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1007/s10368-018-0411-0 Abstract (text/html)
Access to full text is restricted to subscribers.

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:kap:iecepo:v:16:y:2019:i:4:d:10.1007_s10368-018-0411-0

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10368/PS2

DOI: 10.1007/s10368-018-0411-0

Access Statistics for this article

International Economics and Economic Policy is currently edited by Paul J.J. Welfens, Holger C. Wolf, Christian Pierdzioch and Christian Richter

More articles in International Economics and Economic Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().