Exchange Rate Volatility and Trade: A Meta-Regression Analysis

GRP International Journal of Business and Economics ISSN 2048-8556[ONLINE] Vol. 1. No.1 2012, PP. 24-49

27 Pages Posted: 5 Jun 2012 Last revised: 16 Aug 2012

See all articles by Dushko Josheski

Dushko Josheski

University Goce Delcev

Darko Lazarov

University Goce Delcev

Date Written: June 5, 2012

Abstract

Many empirical studies have been done to investigate whether trade is influenced by exchange rate volatility. Conventional wisdom is that increased exchange rate volatility inhibits the growth of foreign trade.This MRA extends by 10 studies and 100 observations Pugh’s and Coric (2008) meta regression. This MRA is updated with studies published to date (2012 year). Around 67 studies have investigated the effect of exchange rate variability and international trade resulting in 923 estimates. On average, exchange rate variability exerts negative effect on international trade. The conlcusion is that in the literature of exchange rate variability and trade there is presence of genuine empirical effect and not a presence for publication bias. The publication bias that appeared in the clustered robust model is perhaps due to the ten papers that were added to Pugh’s and Coric MRA. They were not from the Econlit data base. Results are summarized in the following two tables.

Keywords: Meta regression analysis, exchange rate variability, international trade, egger’s bias regression

JEL Classification: F0,F10

Suggested Citation

Josheski, Dushko and Lazarov, Darko, Exchange Rate Volatility and Trade: A Meta-Regression Analysis (June 5, 2012). GRP International Journal of Business and Economics ISSN 2048-8556[ONLINE] Vol. 1. No.1 2012, PP. 24-49, Available at SSRN: https://ssrn.com/abstract=2077678 or http://dx.doi.org/10.2139/ssrn.2077678

Dushko Josheski (Contact Author)

University Goce Delcev ( email )

Stip
Macedonia
+389 32 550 000 (Phone)
+389 32 390 700 (Fax)

HOME PAGE: http://www.ugd.edu.mk/

Darko Lazarov

University Goce Delcev ( email )

PO box 201
Stip, 2000
Macedonia
+389 550 317 (Phone)

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