We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

The Effect of Exchange Rate Volatility on International Trade in East Asia

The Effect of Exchange Rate Volatility on International Trade in East Asia
Date:
3 December 2008
Authors:
Kazunobu Hayakawa, Fukunari Kimura
Tags:

Print Article:

Abstract



In this paper, we empirically investigate the relationship between exchange rate volatility and international trade, focusing on East Asia. Our findings are summarized as follows: First, intra-East Asian trade is discouraged by exchange rate volatility more seriously than trade in other regions. Second, one important source for the discouragement is that intermediate goods trade in international production networks , which is quite sensitive to exchange rate volatility compared with other types of trade, occupies a significant fraction of East Asian Trade. Third, the negative effect of the volatility is greater than that of tariffs and smaller than that of distance-related costs in East Asia.

ERIA-DP-2008-03.pdf

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

Online Public Service, Asia, Digital Economy
4 March 2024
Editor(s)/Author(s): Fukunari Kimura, Lurong Chen
(still under ISBN process and under review Chief Economist) The implications of digital[...]
trade, semiconductor trade, trade network, regional trade, COVID-19, ASEAN
23 February 2024
Editor(s)/Author(s): K.P. Prabheesh, C.T. Vidya
This paper examines the global semiconductor industry trade network[...]