Asymmetric Effects of Exchange Rate Changes on the Czechia's Foreign Trade: Evidence from Industry Data

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F17%3A00010988" target="_blank" >RIV/47813059:19520/17:00010988 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Asymmetric Effects of Exchange Rate Changes on the Czechia's Foreign Trade: Evidence from Industry Data
Original language description
Previous studies of the effects of exchange rate changes on Czechia's trade balance have assumed exchange rate changes to have symmetric effects on the trade balance or assumed its linear adjustment. In this paper, we distinguish between the depreciation and appreciation to show that the effects at the industry level are in fact asymmetrical in most industries for Czechia's bilateral trade with its most important trading partners. Therefore, the aim of this paper is to evaluate the asymmetric effects of CZK/EUR exchange rate on the most important segment of Czechia´s foreign trade. The asymmetry cointegration approach, which introduces nonlinearity into the model specification, reveals a more significant impact of the exchange rate on commodity trade between Czechia and its most important trading partner than a more standard model that imposes symmetry.
Czech name
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Czech description
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Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Proceedings of the 9th International Conference of Currency, Banking and International Finance
ISBN
978-80-225-4362-0
ISSN
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e-ISSN
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Number of pages
8
Pages from-to
247-254
Publisher name
Ekonóm
Place of publication
Bratislava, Slovensko
Event location
Bratislava
Event date
Sep 20, 2016
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000411851600032

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