The impact of exchange rate volatility on bilateral trade between Iran and Venezuela | ||
| فصلنامه تحقیقات اقتصادی | ||
| Article 4, Volume 51, Issue 3 - Serial Number 116, October 2016, Pages 595-609 PDF (12.38 M) | ||
| Document Type: Research Paper | ||
| DOI: 10.22059/jte.2016.58942 | ||
| Authors | ||
| hadis joudaki; alireza erfani | ||
| semnan university | ||
| Abstract | ||
| Exchange rate and national income of countries trading with each other are among the most important factors affecting each country's trade. Considering the political and economic ties between Iran and Venezuela in recent years, the goal of this paper was to investigate the effect of exchange rate volatility on exports of Iran to Venezuela. Data used in this research include annual data for the period of years 1362-1392. The uncertainty variable of exchange rate is calculated through the residuals of generalized auto-regressive conditional heteroscedasticity (GARCH) model, while autoregressive distributed lag (ARDL) and error correction model (ECM) are applied. The results indicate that the uncertainty coefficient of exchange rate is significant and negative in the short-run for exports model. However, in the long-run, it has no significant effect on exports. Also, the coefficients of GDP and exchange rate variables in the long-run are significant at the significance level of 95 percent, while in the short-run, coefficient of exchange rate has no significant effect on exports. JEL Classification: F31, F22, C22 | ||
| Keywords | ||
| Keywords: Exchange Rate Volatility; Export; Iran; Venezuela; ARDL Method | ||
| References | ||
Cote, A. (1994). Exchange rate volatility and trade: a survey, Bank of Canada Working Paper, 94-95.
Halicioglu, F. (2008). The bilateral J-curve: Turkey versus her 13 trading partners, Journal of Asian Economics, Vol.19, Issue 3.
Nishimura, Y., & Hirayama, K. (2013). Does exchange rate volatility deter Japan-China trade? Evidence from pre-and post-exchange rate reform in China, Japan and the World Economy, Vol. 25–26.
Samanta, Subrana K.(1998). Exchang rate uncertainty & foreign Trade for a Developing Country: Empirical Analysis, The Indian Economic journal.
Serenis, D., & Tsounis, N. (2013). Exchange Rate Volatility and Foreign Trade: The case for Cyprus and Croatia, Procedia Economics and Finance, Vol. 5
| ||
|
Statistics Article View: 2,151 PDF Download: 3,864 |
||