Record Details

EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORTS: EVIDENCE FROM EIGHT DEVELOPED COUNTRIES

Journal of Business and Finance

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Field Value
 
Title EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORTS: EVIDENCE FROM EIGHT DEVELOPED COUNTRIES
 
Creator Butt, Hira Aslam
 
Subject Exchange Rate Volatility, Exports, Pooled Ordinary Least Square, Fixed Effect Model, Random Effect Model, Gross Domestic Products
 
Description The purpose of this study is to empirically examine the relation between volatility in exchange rate and exports of eight developed countries (Australia, Canada, Japan, Korea, New Zealand, Norway, Sweden, and U.K). This study helps in understanding why developed nations have positive relation between volatility in exchange rate and exports. I have regressed three independent variables that are Gross Domestic Product, Consumer Price Index and volatility in exchange rate on total exports of eight developed nations. I have used three estimation techniques in this study including Pooled Ordinary Least Square, Fixed Effect Model and Random Effect Model. Panel Data has been used from 1991Q3 to 2011 Q4. For measuring the volatility in exchange rate “Moving Average Standard Deviation” technique has been used in this study. The results suggest a significant and positive relation between volatility in exchange rate and exports. The reason of these results highlights the important role played by the financial sector in developed nations. Strong financial sector helps the traders by providing hedging facilities which become the major reason to cope with uncertain situation created by volatile exchange rate. Gross Domestic Product variable also shown significant and positive impact on exports while Consumer Price Index shown significant negative impact on total exports.
 
Publisher Journal of Business and Finance
 
Contributor —
 
Date 2013-12-25
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://www.escijournals.net/index.php/JBF/article/view/463
 
Source Journal of Business and Finance; Vol 1, No 3 (2013): J. Bus. Financ.; 139-151
2305-1825
2308-7714
 
Language eng
 
Relation http://www.escijournals.net/index.php/JBF/article/view/463/247
 
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