Download This PaperThe Foreign Exchange Rate Exposure of Nations
17 Pages Posted: 16 Jun 2006
Date Written: 2007
Abstract
Following the well-known approach by Adler and Dumas (1984) we evaluate the foreign exchange rate exposure of nations. Results based on data from 27 countries show that national foreign exchange rate exposures are significantly related to the current trade balance variables of corresponding economies.
Keywords: equity returns, foreign trade, exchange rate exposure, international trade, current trade balance
JEL Classification: F31, G15
Suggested Citation: Suggested Citation
Horst Entorf (Contact Author)
Leibniz Institute for Financial Research SAFE ( email )
(http://www.safe-frankfurt.de)
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany
IZA Institute of Labor Economics
P.O. Box 7240
Bonn, D-53072
Germany
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