SPILLOVER EFFECTS OF QUANTITATIVE EASING ON EXPORTS IN EMERGING MARKET ECONOMIES

Helena Glebocki Keefe () and Sujata Saha ()
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Helena Glebocki Keefe: Department of Economics, Fairfield University, 1073 N. Benson Rd. Fairfield, CT 06824, USA
Sujata Saha: ��Department of Economics, Wabash College, 301 W. Wabash Ave, Crawfordsville, IN 47933, USA

Global Economy Journal (GEJ), 2022, vol. 22, issue 01, 1-25

Abstract: The impact of unconventional monetary policies adopted by advanced economies in the wake of the Global Financial Crisis has had far reaching implications for global economic conditions. Although several transmission channels of quantitative easing to financial market and exchange rate conditions have been identified, there is a lack of empirical investigation on the spillover effects to exports for emerging market economies. The research presented in this paper focuses on assessing the asymmetric transmission of unconventional monetary policy in the US on exports for fifteen emerging market economies. Employing the panel ARDL (Autoregressive Distributed Lag) model, we find that the increase in large-scale asset purchases in the US corresponds to a decline in exports in the emerging market economies. The effect on exports is more sizable in the Fragile Five than in the other 10 emerging markets. Finally, although monetary policy shocks from the US transmit to impact trade in emerging markets, the effect is asymmetric. Specifically, the tapering of the quantitative easing does not have a statistically significant effect on exports.

Keywords: Exports; quantitative easing; emerging markets; spillover effects; ARDL; asymmetry (search for similar items in EconPapers)
JEL-codes: E58 F31 G12 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1142/S2194565922500038

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