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Does the Exchange Rate Regime Affect Export Volumes? Evidence from Bilateral Exports in the US-UK trade: 1900-1998

Stilianos Fountas and Kyriacos Aristotelous
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Kyriacos Aristotelous: Department of Economics, National University of Ireland, Galway

No 43, Working Papers from National University of Ireland Galway, Department of Economics

Abstract: By utilizing the techniques of multivariate cointegration and error correction models, we investigate the impact of the different exchange-rate regimes that spanned the 20th century on the bilateral exports between the UK and the US over the last 98 years. Our results support two conclusions. First, fixed exchange-rate regimes and managed float exchange-rate regimes are equally conducive to trade. Second, freely floating exchange-rate regimes are more conducive to trade than fixed exchange-rate regimes.

JEL-codes: F31 (search for similar items in EconPapers)
Date: 2000, Revised 2000
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