The impact of exchange rate volatility on UK exports to EU countries

De Vita, Glauco and Abbott, Andrew James (2004) The impact of exchange rate volatility on UK exports to EU countries. Scottish Journal of Political Economy, 51 (1). pp. 62-81. ISSN 0036-9292

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Abstract

This paper investigates the impact of exchange rate volatility on UK exports to European Union (EU) countries by means of a newly developed ARDL bounds testing procedure to cointegration. Using monthly data disaggregated by market of destination and sectors for the period 1993ml to 2001m6, our results indicate that UK exports to the EU14, at both aggregate and sectoral level, are generally income elastic, relative price inelastic and largely unaffected by short‐term exchange rate volatility. Re‐estimation of the model using a long‐term measure of volatility, however, provides evidence supporting the hypothesis that exchange rate uncertainty has a negative and significant influence on UK exports to EU countries.

Item Type:
Journal Article
Journal or Publication Title:
Scottish Journal of Political Economy
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/3300/3312
Subjects:
Departments:
ID Code:
141354
Deposited By:
Deposited On:
12 Feb 2020 09:50
Refereed?:
Yes
Published?:
Published
Last Modified:
01 Sep 2020 06:39