Exchange rate regimes and trade
A 'new version' of the gravity model is used to estimate the effect of a full range of de facto exchange rate regimes on bilateral trade. The results indicate that, while participation in a common currency union is typically strongly 'pro-trade', other exchange rate regimes which...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
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Wiley
2007
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| _version_ | 1797074837607284736 |
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| author | Adam, C Cobham, D |
| author_facet | Adam, C Cobham, D |
| author_sort | Adam, C |
| collection | OXFORD |
| description | A 'new version' of the gravity model is used to estimate the effect of a full range of de facto exchange rate regimes on bilateral trade. The results indicate that, while participation in a common currency union is typically strongly 'pro-trade', other exchange rate regimes which lower the exchange rate uncertainty and transactions costs associated with international trade are significantly more pro-trade than the default regime of a "double float". They suggest that the direct and indirect trade-creating effects of these regimes on uncertainty and transactions costs tend to outweigh the trade-diverting substitution effects. Tariff-equivalent monetary barriers associated with each exchange rate regime are also calculated. |
| first_indexed | 2024-03-06T23:42:00Z |
| format | Journal article |
| id | oxford-uuid:6fa1b0c2-dfc6-4458-a208-d8b15d5ffdbc |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T23:42:00Z |
| publishDate | 2007 |
| publisher | Wiley |
| record_format | dspace |
| spelling | oxford-uuid:6fa1b0c2-dfc6-4458-a208-d8b15d5ffdbc2022-03-26T19:31:53ZExchange rate regimes and tradeJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:6fa1b0c2-dfc6-4458-a208-d8b15d5ffdbcEnglishDepartment of Economics - ePrintsWiley2007Adam, CCobham, DA 'new version' of the gravity model is used to estimate the effect of a full range of de facto exchange rate regimes on bilateral trade. The results indicate that, while participation in a common currency union is typically strongly 'pro-trade', other exchange rate regimes which lower the exchange rate uncertainty and transactions costs associated with international trade are significantly more pro-trade than the default regime of a "double float". They suggest that the direct and indirect trade-creating effects of these regimes on uncertainty and transactions costs tend to outweigh the trade-diverting substitution effects. Tariff-equivalent monetary barriers associated with each exchange rate regime are also calculated. |
| spellingShingle | Adam, C Cobham, D Exchange rate regimes and trade |
| title | Exchange rate regimes and trade |
| title_full | Exchange rate regimes and trade |
| title_fullStr | Exchange rate regimes and trade |
| title_full_unstemmed | Exchange rate regimes and trade |
| title_short | Exchange rate regimes and trade |
| title_sort | exchange rate regimes and trade |
| work_keys_str_mv | AT adamc exchangerateregimesandtrade AT cobhamd exchangerateregimesandtrade |