The Asymmetric Effects of Exchange Rate Volatility on International Trade in a Transition Economy: The Case of Vietnam

Truong, Loc Dong; Le, Ha Hoang Ngoc; Vo, Dut Van

doi:10.21098/bemp.v25i2.1636

Cited by 4 publications

(4 citation statements)

References 24 publications

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“…Besides the linear ARDL model specified in equation [ 4 ], some previous studies examined the asymmetric effect of exchange rate volatility on export [ [86] , [87] , [88] ]). The basic premises is that firms do not equally respond to positive and negative volatilities of exchange rate [ 84 , 89 ]).…”

Section: Methods and Datamentioning

confidence: 99%

“…The real effective exchange rate is chosen in order to take into account the export performance of Ethiopia to the rest of the world. Most studies, such as [ [86] , [87] , [88] , [89] ] used the real exchange rate (RER) to examine bilateral or multilateral export performance. Quarterly data on export items of Ethiopia is obtained from the International Trade Center (ITC) database.…”

Section: Methods and Datamentioning

confidence: 99%

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Effects of real effective exchange rate volatility on export earnings in Ethiopia: Symmetric and asymmetric effect analysis

Urgessa

2024

Heliyon

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Section: Methods and Datamentioning

confidence: 99%

Section: Methods and Datamentioning

confidence: 99%

Effects of real effective exchange rate volatility on export earnings in Ethiopia: Symmetric and asymmetric effect analysis

Urgessa

2024

Heliyon

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“…He recommended that Egypt should be the key gas "trader" for decades to come because based on geographical location we are the African gate to the European and Central Asia gas markets. Truong et al (2022) conducted a study examining the asymmetric effects of Exchange Rate Volatility (ERV) on Vietnam's international trade during the period spanning from January 2010 to December 2019. The research employed time-series data and the Nonlinear Autoregressive Distributed Lag (NARDL) model to analyse the correlation between exchange rate volatility (ERV) changes and the trade balance.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Impact of Liquefied Natural Gas Exports on the Nigerian Exchange Rate: An ARDL Cointegration Approach, 2000 to 2021

Udoudo,

Emele Kalu,

Oduola

2023

Am. J. Appl. Stat. Econ.

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This study aimed to investigate the impact of liquefied natural gas (LNG) exports on the exchange rate of Nigeria. The investigation employed an autoregressive distributed lag model (ARDL) methodology to analyse data spanning the years 2000 to 2021 using a biannual dataset. The empirical findings provided evidence of a statistically significant and positive influence of liquefied natural gas exports on the exchange rate. This is supported by the results obtained from the short-term analysis. The research results revealed no causal link between the exports of LNG and the exchange rate in Nigeria. The study concludes that LNG exports cause the Naira to depreciate. The research suggested that the government should actively endorse and facilitate the expansion of non-oil and gas sectors, including agriculture, manufacturing, and services, to cultivate a more varied export portfolio. Moreover, adequate reserves can be used to stabilize the Naira during periods of volatility caused by fluctuations in LNG exports or other external factors.

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“…Finally, the Autoregressive Distributed Lag (ARDL) models present a valuable and flexible framework for investigating both short-run and longrun dynamics in economic relationships (Bahmani-Oskooee et al (2012), Chen (2008), Sun and Chiu (2010)). Their non-linear variant (NARDL) takes a step further by addressing asymmetric effects, see Bahmani-Oskooee et al (2020), Baek and Nam (2021), Truong et al (2022), and Chien et al (2020).…”

Section: Introductionmentioning

confidence: 99%

Asymmetric Effects of Exchange Rate Volatility on Taiwan-China Trade: A Non-Linear ARDL Analysis of 20 Industries

Tetin,

Antonenko,

Nuryyev

2023

Bulletin of Applied Economics

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This study investigates the long-run and short-run effects of exchange rate volatility on Taiwan's exports to and imports from China across 20 industries, employing a non-linear autoregressive distributed lag (NARDL) approach. The analysis covers the period from January 2004 to December 2022 and highlights industry-specific sensitivities and asymmetric impacts of exchange rate fluctuations. Our findings reveal the critical role of exchange rate volatility in shaping export and import performance across industries, with both positive and negative shocks exerting significant short-run and long-run effects. Asymmetric impacts of exchange rate fluctuations affect 87.96% of Taiwan's total exports to China in the long run and 72.11% in the short run. In contrast, the asymmetric impacts on imports influence 77.12% of Taiwan's total imports from China in the long run and 13.21% in the short run, demonstrating varying sensitivity across industries. These findings accentuate the necessity for industry-tailored trade policies and strategic considerations to better manage the risks and opportunities presented by exchange rate volatility in cross-strait trade. JEL classification numbers: F14, F31, C22. Keywords: Exchange rate volatility, Taiwan-China trade, Non-linear ARDL, Asymmetric effects.

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The Asymmetric Effects of Exchange Rate Volatility on International Trade in a Transition Economy: The Case of Vietnam

Cited by 4 publications

References 24 publications

Effects of real effective exchange rate volatility on export earnings in Ethiopia: Symmetric and asymmetric effect analysis

Effects of real effective exchange rate volatility on export earnings in Ethiopia: Symmetric and asymmetric effect analysis

Impact of Liquefied Natural Gas Exports on the Nigerian Exchange Rate: An ARDL Cointegration Approach, 2000 to 2021

Asymmetric Effects of Exchange Rate Volatility on Taiwan-China Trade: A Non-Linear ARDL Analysis of 20 Industries

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