Exchange rate volatility and trade: A Meta-Regression Analysis

Josheski, Dushko and Lazarov, Darko (2012) Exchange rate volatility and trade: A Meta-Regression Analysis. GRP International Journal of Business and Economics, 1 (1). pp. 23-49. ISSN 2048-8556

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Abstract

Many empirical studies have been done to investigate whether trade is influenced by
exchange rate volatility. Conventional wisdom is that increased exchange rate volatility
inhibits the growth of foreign trade.This MRA extends by 10 studies and 100 observations
Pugh’s and Coric (2008) Meta regression. Now this MRA is updated with studies published
to date (2012 year). Around 67 studies have investigated the effect of exchange rate
variability and international trade resulting in 923 estimates. On average, exchange rate
variability exerts negative effect on international trade. The conlcusion is that in the literature
of exchange rate variability and trade there is presence of genuine empirical effect and not a
presence for publication bias. The publication bias that appeared in the clustered robust
model is perhaps due to the ten papers that were added to Pugh’s and Coric MRA. They were
not from the Econlit data base. Results are summarized in the following two tables.

Item Type:	Article
Subjects:	Social Sciences > Economics and business
Divisions:	Faculty of Tourism and Business Logistics
Depositing User:	Dusko Josevski
Date Deposited:	21 Nov 2012 14:10
Last Modified:	21 Oct 2014 13:34
URI:	https://eprints.ugd.edu.mk/id/eprint/1570

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