Empirical Evidence On The Correlation Between The Exchange Rate And Romanian Exports

Valentin Cojanu, Cristian Paun and Radu Lupu (radu.lupu@rei.ase.ro)

MPRA Paper from University Library of Munich, Germany

Abstract: Few subjects of international economics are so much exposed to heated debates as the exchange rate problem. From monetary crises and balance-of-payments adjustments to monetary zones, dealing with currency swings seems to embody any economist's worries about the rightfulness of economic models and the relevance of empirical analyses he or she has to choose. Is appreciation or depreciation good for a country's welfare? Would that answer still be valid in the long run? The unsettled character of the problem largely resides in the manifest contradiction between the firm theoretical predictions and their unconvincing empirical testing. One of the least uncontroversial tenets refers to the positive correlation between currency depreciation or devaluation (although of different origins, their effects are generally the same) and a country's current account. This paper attempts to test this prediction on the case of Romanian economy and to conclude on possible explanations of the theoretical-empirical conflict.

Keywords: exports; exchange rate; elasticity (search for similar items in EconPapers)
JEL-codes: F1 F2 F4 (search for similar items in EconPapers)
Date: 2006-10-15, Revised 2008-02-02
New Economics Papers: this item is included in nep-opm
References: View complete reference list from CitEc
Citations:

Published in International Conference on Commerce - CD 1.1(2006): pp. 205-214

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/7060/1/MPRA_paper_7060.pdf original version (application/pdf)

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:pra:mprapa:7060

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).