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 lower the...
| Main Authors: | , |
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| Format: | Journal article |
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Wiley
2007
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| _version_ | 1797092740705550336 |
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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 | 2024-03-07T03:50:19Z |
| format | Journal article |
| id | oxford-uuid:c1050364-402f-458f-bf90-96aa3a024cc2 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T03:50:19Z |
| publishDate | 2007 |
| publisher | Wiley |
| record_format | dspace |
| spelling | oxford-uuid:c1050364-402f-458f-bf90-96aa3a024cc22022-03-27T05:58:31ZExchange rate regimes and tradeJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:c1050364-402f-458f-bf90-96aa3a024cc2Social Sciences Division - DaisyWiley2007Adam, 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 |