Exchange rate volatility and export performance: Evidence from the ASEAN-5

• Main Authors: Carino, Camille Joy F., Dannug, Arni N., Orbeta, Mary Christabelle G., Tan, Kimberlya A.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Foreign exchange rates > Philippines; Exports > Philippines; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11310
• Institution: De La Salle University

Recent studies have shown that exchange rate volatilities have been a source of concern for a country's trade relations. This study investigates the effect of exchange rate volatility on the bilateral exports of the ASEAN-5 to its top three trading partners using an extended gravity model of balanced panel from 1995 to 2010. In order to attest robustness of the long-run relationship between exchange rate volatility and exports, panel unit root tests and cointegration tests are also conducted. After applying the necessary tests, the Generalized Two-Step Least Squares method is used to explain the relationship between the variables. Results show that the effect of exhange rate volatility is only significant on the bilateral exports of Singapore and Indonesia, having a negative and positive effect respectively.