Even though numerous empirical studies have investigated the effects of the post-Bretton Woods increase in exchange-rate volatility, they have not reached a consensus whether this uncertainty universally reduces trade flows. As a result, recent studies have employed industry-level data to...

Previous research that investigated the impact of exchange rate volatility on the trade flows of Malaysia concentrated only on the aggregate exports of Malaysia to the rest of the world. In this paper we first concentrate on the trade flows between Malaysia and the U.S. After showing that...

Couple previous studies that have investigated the J-curve phenomenon for Indonesia, have employed aggregate trade data and provided mixed results. Given the aggregation bias embodied in using trade data between Indonesia and the rest of the world, we disaggregate Indonesian trade data by...

Purpose – The purpose of this paper is to investigate the sensitivity of Indonesia's inpayments and outpayments to currency depreciation on a bilateral basis. Design/methodology/approach – The methodology used is based on the bounds testing approach. Findings – It is found that while real...

In an attempt to assess the impact of currency depreciation on the trade balance, recent studies are employing disaggregated trade data to avoid aggregation bias. However, since import and export prices are not available at disaggregated level, recent studies are using export and import values...

Recent studies have greatly expanded the literature on the effects of exchange-rate volatility on industry-level bilateral trade flows. In this study, we examine the case of the United States and France, applying cointegration analysis to a set of 146 U.S. export and 115 U.S. import industries....

The impact of currency depreciations on trade has inspired a large body of research. Recent studies have examined industry-level trade, often using cointegration analysis, finding that a significant fraction of industries respond positively to devaluations. Oftentimes, adjustment lags result in...

As one of the indebted Southern European countries that have put pressure on the Euro in recent months, Italy would benefit from a reduction in its external trade deficit. One channel could be through a weakening of its currency—which would only work if the Euro depreciated against the...

In recent years, research on the effects of currency movements on trade has used disaggregated data and error-correction and cointegration models. The resulting short-run and long-run estimates can be used to isolate not only specific industry responses, but also dynamic effects such as the “J...

As Brazil continues its emergence as a major world economy, it has enjoyed both increased trade and capital inflow-fueled currency appreciations. But while it is often thought that exchange-rate volatility hurts trade, the economic literature has found that this is not always true. This study...