Asymmetric Effects of Exchange Rate Changes on the Foreign Trade of Czechia

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F18%3A00011201" target="_blank" >RIV/47813059:19520/18:00011201 - isvavai.cz</a>

Result on the web

<a href="https://ideas.repec.org/a/mes/eaeuec/v56y2018i5p422-437.html" target="_blank" >https://ideas.repec.org/a/mes/eaeuec/v56y2018i5p422-437.html</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1080/00128775.2018.1487767" target="_blank" >10.1080/00128775.2018.1487767</a>

Result language

angličtina

Original language name

Asymmetric Effects of Exchange Rate Changes on the Foreign Trade of Czechia

Original language description

Previous studies of the effects of exchange rate changes on Czechia's trade balance have assumed symmetric effects on the trade balance or assumed its linear adjustment. The aim of this paper is to evaluate the asymmetric effects of the CZK/EUR exchange rate on the most important segment of Czechia´s foreign trade. The period from 1999 to 2014 was analyzed, and the data was disaggregated according to trading partner and product category. The results of the study show that exchange rate co-movement with partial trade balances is mostly confirmed by employing both applied approaches. However, the asymmetry cointegration approach, which introduces nonlinearity into the model, reveals a more significant impact of the exchange rate on commodity trade between Czechia and its most important trading partners than a more standard model that imposes symmetry. Furthermore, distinguishing between depreciation and appreciation showed that the effects at the industry level are, in fact, asymmetrical in most industries when assessing Czechia's bilateral trade with its most important trading partners.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

—

Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Eastern European Economics

ISSN

0012-8775

e-ISSN

1557-9298

Volume of the periodical

5

Issue of the periodical within the volume

56

Country of publishing house

GB - UNITED KINGDOM

Number of pages

16

Pages from-to

422-437

UT code for WoS article

000443864300005

EID of the result in the Scopus database

2-s2.0-85049658093