ASYMMETRIC EFFECTS OF EXCHANGE RATE VOLATILITY ON BILATERAL TRADE BETWEEN TAIWAN AND INDONESIA-Reference-Cited by-同舟云学术

ASYMMETRIC EFFECTS OF EXCHANGE RATE VOLATILITY ON BILATERAL TRADE BETWEEN TAIWAN AND INDONESIA

Published:2020-06 Issue:04 Volume:65 Page:857-888
ISSN:0217-5908
Container-title:The Singapore Economic Review
language:en
Short-container-title:Singapore Econ. Rev.

Author:

CHIEN MEI-SE¹,SETYOWATI NUR²³^ORCID,CHENG CHIH-YANG⁴

Affiliation:

1. Department of Finance and Information, National Kaohsiung University of Science and Technology, 415 Chien Kung Road, Kaohsiung 807, Taiwan

2. Department of International Business, National Kaohsiung University of Science and Technology, Taiwan

3. Accounting Department, Politeknik Negeri Semarang, Indonesia

4. Department of Finance, National Sun Yat-Sen University, Taiwan

Abstract

This paper investigates the effect of exchange rate volatility on bilateral trade between Taiwan and Indonesia via 19 export and import industries. Considering the existence of an asymmetric effect of exchange rate volatility on trade, we employ an asymmetric ARDL model and arrive at the following main results. First, the long-run asymmetric effect of exchange rate volatility shows far higher impacts on Taiwan’s exports to Indonesia than on Taiwan’s imports from Indonesia. Second, the short-run asymmetric effect of exchange rate volatility causes unstable changes on the trade amounts for most of Taiwan’s export and import industries with Indonesia.

Publisher

World Scientific Pub Co Pte Lt

Subject

Economics and Econometrics

Link

https://www.worldscientific.com/doi/pdf/10.1142/S021759082050006X

Reference42 articles.

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2. Exchange-rate volatility in Latin America and its impact on foreign trade

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