THE ASYMMETRIC EFFECTS OF EXCHANGE RATE VOLATILITY ON INTERNATIONAL TRADE IN A TRANSITION ECONOMY: THE CASE OF VIETNAM

  • Loc Dong Truong Can Tho University
  • Ha Hoang Ngoc Le Can Tho University
  • Dut Van Vo Can Tho University
Keywords: Exchange rate volatility, Trade flows, NARDL, Vietnam

Abstract

This study examines the asymmetric effects of Exchange Rate Volatility (ERV) on Vietnam’s international trade. Using time-series data fitted to the Nonlinear Autoregressive Distributed Lag (NARDL) model, we find that positive changes in ERV have a negative impact on the trade balance in the short-run. On the other hand,
increases in ERV have a positive impact on the trade balance in the long-run. We also find that negative changes in ERV do not have any significant effect on the trade balance.

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Published
2022-08-31
How to Cite
Truong, L., Le, H. H. N., & Vo, D. (2022). THE ASYMMETRIC EFFECTS OF EXCHANGE RATE VOLATILITY ON INTERNATIONAL TRADE IN A TRANSITION ECONOMY: THE CASE OF VIETNAM. Buletin Ekonomi Moneter Dan Perbankan, 25(2), 203-214. https://doi.org/10.21098/bemp.v25i2.1636
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Articles