Do changes in the real exchange rate affect the trade balance? Evidence from European countries

• Main Authors: Felipe, Jesus, Perez-Montiel, Jose Antonio, Ozcelebi, Oguzhan
• 格式: text
• 出版: Animo Repository 2024
• 主題: causality tests, effective exchange rate, Europe, unit labor costs
• 在線閱讀: https://animorepository.dlsu.edu.ph/res_aki/192; https://animorepository.dlsu.edu.ph/context/res_aki/article/1194/viewcontent/DLSU_AKI_Working_Paper_Series_2024_02_091__1_.pdf

We use five time and frequency domain causality tests to study whether unit labor costs-based real exchange rate depreciations / appreciations caused improvements / deteriorations in the trade balances of ten Eurozone economies, and thus contributed to closing trade imbalances, during 1995-2019. The...