Impact of the Exchange Rate Volatility on the Romanian Exports to the Euro Area
8 Pages Posted: 8 Dec 2012
Date Written: December 3, 2009
This paper approaches the relation between the exchange rate volatility and the Romanian exports to the Euro Area. We employ monthly values of the real exports and the standard deviation of the real exchange rate in a Vector Autoregressive model. We find a negative and weak influence of the exchange rate volatility on the exports, which could be connected with the fact that main Romanian exporters are multinational companies.
Keywords: Exchange Rate Volatility, Romanian Exports, Vector Autoregressive
JEL Classification: F31, F40
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