Return to search

Trade openess and exchange rate volatility

<p>The present thesis tries to argue the importance of non monetary factors in explaining real exchange rate volatility. The main interest is on the effect of trade openness on real effec-tive exchange rate (REER) volatility. Based on theoretical studies I test the existence of a negative relationship between total trade share of an economy and the volatility of REER. Empirical evidence on a panel of 11 CEE and Baltic Countries for the 1995-2006 period confirms the relationship. The conclusion is that for these specific countries a large part of variation of the real exchange rate can be explained by openness of the respective economy to trade.</p>

Identiferoai:union.ndltd.org:UPSALLA/oai:DiVA.org:hj-983
Date January 2007
CreatorsCociu, Sergiu
PublisherJönköping University, Jönköping International Business School
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, text

Page generated in 0.0019 seconds