The impact of trade and financial expansion on volatility of real ...

The volatilities of a country's foreign exchange rate directly affect its import and export trade, economic structure, and production layout. Generally, the ...

The main conclusions are that trade openness is negatively correlated with the volatility of real exchange rate, and financial openness is ...

The impact of terms of trade and real exchange rate volatility on ...

Growth is negatively affected by terms of trade instability, and investment by real exchange rate instability. Both growth and investment increase when the ...

Case study The impact of trade and financial expansion on volatility ...

Financial expansion, such as increased capital flows, can also impact the volatility of the real exchange rate. Understanding these dynamics is ...

The impact of exchange rate volatility on trade: The evidence from ...

Other explanations as to why exchange rate volatility exerts less of an impact on trade flows relate to the development of relevant financial instruments on the ...

Peer Review History - PLOS

PONE-D-21-35606The Impact of Trade and Financial Expansion on Volatility of real exchange ratePLOS ONE. Dear Dr. Chen,.

Does higher openness cause more real exchange rate volatility

Although the former is mainly driven by manufacturing trade, the latter depends on the share of debt (and equity) in total foreign liabilities. (e) Financial ...

IV New Evidence on the Effect of Exchange Rate Volatility on Trade in

In the empirical analysis reported in this section, there is no obvious negative relationship between aggregate exchange rate volatility and aggregate trade.

Real exchange-rate volatility and trade flows - ScienceDirect.com

The major results show that increases in the volatility of the real exchange rate, approximating exchange-rate uncertainty, exert a significant negative effect ...

Openness and Real Exchange Rate Volatility: Evidence from China

Financial development can magnify (mitigate) the impact of trade openness on volatility in the short (long) term, but its role in affecting the ...

A New Look at Exchange Rate Volatility and Trade Flows

3.5 Real Effective Volatility Across Regimes and Time Periods. 18. 4.1 Effect of Long-Run Real Exchange Rate Volatility on. Aggregate Trade. 24. 4.2 Alternative ...

Exchange rate volatility and trade: a literature survey - USC

by Real Financial Linkages Among Open. Economies, (London: The MIT Press). De Grauwe, P. (1988) “Exchange Rate Variability and The. Slowdown in Growth of ...

The impact of exchange rate volatility on economic growth and ...

The empirical analysis concludes that there is a negative effect of real exchange rate volatility on the growth rate of trade, but when the two subperiods are.

Publication: Exchange Rate Volatility, Financial Constraints, and Trade

These results provide micro-founded evidence suggesting that the existence of well-developed financial markets allows firms to hedge exchange rate risk. The ...

To What Extent Do Exchange Rates and their Volatility Affect Trade?

(1987) Long-run exchange rate variability and international trade, in Real financial Linkages among Open Economies (Eds) S. Arndt and J. D. Richardson,. The ...

TRADE OPENNESS AND REAL EXCHANGE RATE VOLATILITY

The lower speed of adjustment in the goods markets (relative to financial markets) was the mechanism — according to this model— through which the exchange rate ...

Exchange rate volatility, corruption, and economic growth: Heliyon

Volatility implies uncertainty, which can be attractive for speculative financial investments and can even accentuate such instability if the ...

Trade Openness And Real Exchange Rate Volatility: Panel Data

We will use GMM-IV methods for panel data to test the following hypotheses: (a) real exchange rate (RER) fluctuations are less volatile in more open countries, ...

Effects of Terms of Trade and its Volatility on Economic Growth

Furthermore, volatility of terms of trade has significant positive effect on economic growth. To test the robustness of initial results, ...

Trade openness and macroeconomic volatility - VoxDev

Because specialisation (or lack of diversification) in production tends to an increase a country's exposure to shocks specific to the sectors ( ...