Real Exchange Rate and Consumption Fluctuations Following Trade Liberalization

2006 ◽  
Author(s):  
Kristian J. Hartelius
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Liberalization ◽  
Consumption Fluctuations

scholarly journals The Effect of Trade Liberalization on Firm Entry and Exit in Punjab, Pakistan

2014 ◽  
Vol 19 (1) ◽  
pp. 67-89
Author(s):  
Marjan Nasir
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Liberalization ◽  
Manufacturing Sector ◽  
Firm Entry ◽  
Entry And Exit ◽  
Export Industries ◽  
The Impact ◽  
Firm Entry And Exit ◽  
Exchange Rate Depreciation

This study focuses on the impact of trade liberalization on firm entry and exit in Punjab’s export manufacturing sector over the decade 2001–10. As far as the province’s export industries are concerned, real exchange rate depreciation attracts new firms but also leads weaker firms to exit. A reduction in local or international tariffs, however, has no significant impact on firm entry or exit.

scholarly journals Long term dynamic of real exchange rate, trade liberalization and financial integration: The case of south-east Mediterranean countries

2009 ◽  
Vol 56 (1) ◽  
pp. 73-93
Author(s):  
Hadj Amor ◽  
Araj El
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Liberalization ◽  
Financial Integration ◽  
Single Equation ◽  
East Mediterranean ◽  
Mediterranean Countries ◽  
International Financial Integration ◽  
Trade Opening

The purpose of this paper is to estimate the effects of the trade liberalization and of the international financial integration on the long-term behavior of Real Exchange Rate (RER) for the South East Mediterranean countries. So the following question: how does the new trade and financial context affect the Equilibrium RER? We refer to the econometric technique of time series analysis, (the unit root tests of Dickey-Fuller (1979) and we apply the cointegration test of Engle and Granger (1987) of single equation for six South East Mediterranean countries (Algeria, Egypt, Lebanon, Morocco, Tunisia and Turkey) over the period of 1979-2004. Our estimates suggest that, for the six countries, long-term RER behavior depends essentially on economic specificity of each country and in particular on their degree of financial integration and trade opening. Our results also show that the evolution of the RER misalignment during our sample period, seem to be for some countries persistant and recurrent, but with decrease.

scholarly journals Estimated Policy Effects on Vietnam’s Exports to Its Major APEC Trade Partners: A Gravity Model Approach

2013 ◽  
Vol 217 ◽  
pp. 02-14
Author(s):  
IM ERIC IKSOON ◽  
Vu Tam Bang
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Liberalization ◽  
Gravity Model ◽  
Indirect Effects ◽  
Asia Pacific ◽  
Policy Effects ◽  
Trade Partners ◽  
Positive Effect ◽  
Model Approach

This paper carries out an empirical assessment of the effects of a set of policy determinants of Vietnam?s exports to its five major Asia Pacific trade partners (China, Japan, South Korea, Singapore, and US) over 23 years from 1989 to 2011. In doing so, a gravity model is employed, which includes two sets of variables: one for gravity variables, and the other for policy-related variables. The latter includes four policy variables: real exchange rate, trade liberalization, anti-corruption activity, and WTO membership status. The effects of real exchange rate and anti-corruption activity are each specified as a linear function of the degree of trade liberalization to capture the indirect effects of trade liberalization on Vietnam?s exports over time. The effect of trade liberalization on Vietnam?s exports is specified as linear dependent on its WTO membership status to capture its direct effect and the additional effect attributable to Vietnam?s accession to WTO on its exports. We find that Vietnam?s trade liberalization has direct and indirect positive impacts on its trades, and its accession to WTO has a positive effect as well, contrary to some criticism otherwise.

scholarly journals Trade Liberalization, Consumption, and Real Exchange Rate in Seven ASEAN+6 Countries

2017 ◽  
Vol 9 (4(J)) ◽  
pp. 73-86
Author(s):  
Sigit Setiawan
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Liberalization ◽  
Subprime Mortgage ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
Liberalization Policy ◽  
Relationship Of ◽  
The Relationship ◽  
Case Basis

Trade liberalization has been mushrooming in the globalization era. The trade liberalization policy adoption by one country will be followed shortly by another. Although trade liberalization policy is strongly advocated by international organizations, a few prominent economists argue there is no ‘one fits for all’ policy. Thus, the policy effect altogether with other relevant aspects still needs to be explored in case by case basis, including ASEAN+6 regions. This paper is intended to analyze the relationship of trade liberalization and consumption on the real exchange rate in seven ASEAN+6 countries – the most dynamic region during period 2000 – 2011, a period covering subprime mortgage crisis. With data panel approach, the paper investigates the relationship of trade liberalization and consumption on real exchange rate while taking into account level of country’s income and crisis effect. The resulted model finds significant relationship in the overall and individual effect of tariff and terms of trade change as proxies of trade liberalization, consumption, level of country’s income, and subprime mortgage crisis on real exchange rate.

scholarly journals Trade Liberalization, Consumption, and Real Exchange Rate in Seven ASEAN+6 Countries

2017 ◽  
Vol 9 (4) ◽  
pp. 73
Author(s):  
Sigit Setiawan
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Liberalization ◽  
Subprime Mortgage ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
Liberalization Policy ◽  
Relationship Of ◽  
The Relationship ◽  
Case Basis

Trade liberalization has been mushrooming in the globalization era. The trade liberalization policy adoption by one country will be followed shortly by another. Although trade liberalization policy is strongly advocated by international organizations, a few prominent economists argue there is no ‘one fits for all’ policy. Thus, the policy effect altogether with other relevant aspects still needs to be explored in case by case basis, including ASEAN+6 regions. This paper is intended to analyze the relationship of trade liberalization and consumption on the real exchange rate in seven ASEAN+6 countries – the most dynamic region during period 2000 – 2011, a period covering subprime mortgage crisis. With data panel approach, the paper investigates the relationship of trade liberalization and consumption on real exchange rate while taking into account level of country’s income and crisis effect. The resulted model finds significant relationship in the overall and individual effect of tariff and terms of trade change as proxies of trade liberalization, consumption, level of country’s income, and subprime mortgage crisis on real exchange rate.

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