The impact of exchange rate uncertainty on exports: a panel VAR analysis/El impacto de la incertidumbre del tipo de cambio sobre las exportaciones: un analisis de panel VAR

In this paper we analyze the impact of exchange rate uncertainty on export flows among a panel of 27 countries throughout the 1994/01-2014/12 period. In order to do this, we apply a panel vector autoregressive model approach. By dividing the panel into two subgroups that involve manufacturing-export...

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Bibliographic Details
Published in:Estudios de economia 2020-12, Vol.47 (2), p.157
Main Authors: Muinelo-Gallo, Leonel, Lescano, Ronald Miranda, Mordecki, Gabriela
Format: Article
Language:Spanish
Online Access:Get full text
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Summary:In this paper we analyze the impact of exchange rate uncertainty on export flows among a panel of 27 countries throughout the 1994/01-2014/12 period. In order to do this, we apply a panel vector autoregressive model approach. By dividing the panel into two subgroups that involve manufacturing-exporting and commodity-exporting economies, we observe a different effect of exchange rate uncertainty on exports. This has a negative impact in manufacturing-exporting countries, but does not affect commodity-exporting countries. This result appears to be explained by countries' economics characteristics, involving the flexibility or rigidities of the export adjustment arising exchange rate uncertainty.
ISSN:0304-2758