Trade flows, relative prices, and effective exchange rates: a VAR on Ethiopian data

1991 ◽  
Vol 23 (8) ◽  
pp. 1369-1376 ◽  
Author(s):  
Abebayehu Tegene
Keyword(s):  
Exchange Rates ◽  
Trade Flows ◽  
Relative Prices ◽  
Effective Exchange

scholarly journals Foreign Exchange Market and the Asset Approach

2021 ◽  
Vol 9 (9) ◽  
pp. 351-356
Author(s):  
Dr. Varsha Agarwal
Keyword(s):  
International Trade ◽  
Exchange Rates ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Foreign Currency ◽  
Trade Flows ◽  
Exchange Market ◽  
Abstract Exchange ◽  
Relative Prices ◽  
Goods And Services

Abstract: Exchange rates play a central role in international trade because they allow us to compare the prices of goods and services produced in different countries. A consumer deciding which of two American cars to buy must compare their dollar prices. Households and firms use exchange rates to translate foreign prices into domestic cur-rency terms. Once the money prices of domestic goods and imports have been expressed in terms of the same currency, households and firms can compute the relative prices that affect international trade flows. Keywords: Foreign Exchange, Exchange Rate, International Trade, Foreign Currency, FOREX Rate, Assets Approach.

The Sterling Effective Exchange Rate and Other Measures of UK Competitiveness

2005 ◽  
Vol 191 ◽  
pp. 54-63 ◽  
Author(s):  
Ray Barrell ◽  
Amanda Choy ◽  
Dawn Holland ◽  
Rebecca Riley
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Real Exchange Rates ◽  
Relative Prices ◽  
Bilateral Exchange ◽  
Nominal Exchange Rates ◽  
Exchange Rate Movements ◽  
Effective Exchange ◽  
Summary Measures ◽  
Effective Exchange Rate

Movements in exchange rates attract much attention, both for the signals they may contain about future inflation prospects and for their implications for the competitiveness of firms. However, movements in bilateral exchange rates, for instance in sterling against the dollar or the euro, do not convey enough information for either policymakers or for firms except in relation to specific bilateral transactions. It is useful to construct summary measures of exchange rate movements, and there are a number of ways of doing this. The choice of measure depends upon the use to which it is to be put. Some measures, such as the effective exchange rate, are summary indicators, whilst others such as export competitive indices are more relevant when evaluating the prospects for export developments. Some indicators weight together nominal exchange rates. Others are measures of real exchange rates, weighting together exchange rate adjusted relative prices. The indicators chosen should be seen in the context in which they are used.

scholarly journals A Predictive Effect of Exchange Rates on Value-Added Free Trade

2020 ◽  
Vol 12 (21) ◽  
pp. 9146
Author(s):  
Myoung Shik Choi
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Trade Balance ◽  
Value Added ◽  
Trade Flows ◽  
Currency Depreciation ◽  
Effective Exchange ◽  
The Exchange Rate ◽  
Positive Effect

The study investigates a predictive exchange rate effect on value-added trade flows on global value chains. We theoretically review the role of exchange rates on international trade based on insular, open, and global value chained economies. This paper empirically confirms a retro forecasting rule of the exchange rate on exports and trade balance using the value-added data for the period from 1995 to 2015. The first result is that real effective exchange rates have predictive elasticity information for the value-added trade flows. The second is that exchange rates have two practical effects on trade flows. The value-added exchange rate hurts the value-added trade balance due to increased intermediate trades, but the exchange rate has a positive effect on the gross trade balance. We would expect that value-added exports with trade balance can be improved in all sample countries when the value-added exchange rate is increasing. The main contribution is further evidence on distinguishing the currency depreciation on the value-added trade from the depreciation on the gross trade to achieve higher growth.

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