Bilateral Exports from Euro Zone Countries to the US - Does Exchange Rate Variability Play a Role?

CEGE Discussion Paper No. 121

27 Pages Posted: 14 Apr 2011 Last revised: 22 Apr 2011

See all articles by Florian Verheyen

Florian Verheyen

University of Duisburg-Essen - Department of Economics and Business Administration

Date Written: April 12, 2011

Abstract

The financial crisis and the debt crisis in Europe lead to pronounced swings of the $/€-exchange rate. The influence of this exchange rate uncertainty on exports is neither theoretically nor empirically unambiguous. Therefore, this investigation tries to find out what effect exchange rate volatility has got on exports from eleven euro zone countries to the US. Our results suggest that if exchange rate volatility exerts a significant influence on exports, it is typically negative. Furthermore, exports of SITC categories 6 and 7 seem to be affected negatively most often.

Keywords: bilateral exports, euro zone countries, exchange rate variability, ARDL bounds testing approach

JEL Classification: C22, F14, F49

Suggested Citation

Verheyen, Florian, Bilateral Exports from Euro Zone Countries to the US - Does Exchange Rate Variability Play a Role? (April 12, 2011). CEGE Discussion Paper No. 121, Available at SSRN: https://ssrn.com/abstract=1807942 or http://dx.doi.org/10.2139/ssrn.1807942

Florian Verheyen (Contact Author)

University of Duisburg-Essen - Department of Economics and Business Administration ( email )

Universitätsstr. 9
Essen, 45141
Germany

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