Exchange Rate Volatility and International Trade Flows: Evidence from Thailand

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Mai Lien Thi Dau Yuthana Sethapramote

Abstract

ABSTRACT


         The paper examines the impact of exchange rate volatility on bilateral imports and exports between Thailand and its top-20trading partners from 1996 to 2018 using the autoregressive distributed lag (ARDL) bounds testing approach.  Our empirical results show three main findings. First, exchange rate volatility was found to have a significant effect on Thailand’s trade with most countries in the Asia-Pacific region. Secondly, exchange rate volatility mostly had a positive effect on Thailand’s bilateral trade in the short run; however, these effects were found to be negative in the long run. Finally, exchange rate volatility generally was seen to have a slightly stronger effect on imports rather than exports in both the short and long run.  This implies that Thai imports show a greater response to exchange rate volatility than Thai exports.

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How to Cite
DAU, Mai Lien Thi; SETHAPRAMOTE, Yuthana. Exchange Rate Volatility and International Trade Flows: Evidence from Thailand. วารสารเศรษฐศาสตร์และกลยุทธ์การจัดการ ( Journal of Economics and Management Strategy ), [S.l.], v. 8, n. 2, p. 57-75, dec. 2021. ISSN 2586-9744. Available at: <https://kuojs.lib.ku.ac.th/index.php/jems/article/view/3504>. Date accessed: 28 may 2022.
Section
บทความวิจัย (Research Article)