The purpose of this study is to investigate the factors that affect real exchange rate volatility for Pakistan through the co-integration and error correction model over a 30-year time period, i.e. between 1980 and 2010. The study employed the autoregressive conditional heteroskedasticity (ARCH), generalized autoregressive conditional heteroskedasticity (GARCH) and Vector Error Correction model...

Given that a multinational enterprise can react flexibly upon exchange rate movements, international trade flows may be interpreted as an option. An enterprise will opt to export if the profits obtained from exporting under given exchange rate developments are greater than if foreign subsidiary sales were opted. Naturally, given negative exchange rate scenario situations, an enterprise will cho...

Abstract: In this paper we investigate the effects of volatility of the fundamental determinants of trade on trade flows in México during the period 1991-2008. Our import and export functions are based on the well known imperfect substitute goods model of trade. We focus on the effects of real exchange rate as well as measures of relative prices and real income and their associated conditional ...

This paper aims to identify the main risk groups according their significance on imports of agricultural products. After analysis scientific literature, eight risks associated with products import were determined: supply risks, demand production management plus operational logistical infrastructural political policy regulatory and financial risks. In order assess importance all groups, three Mu...

Export and Import are very crucial part of our international trade have always been so in the past. helps country to earn dearer foreign exchange which supports imports this promotes economic growth. This study is carried out investigate linkage between exports, import GDPat factor cost at constant price India for period post liberalization from 1991-92 2012-13. It analyzed how exports contribu...

At the end of 1998, the staff of the Federal Reserve Board introduced a new set of indexes of the foreign exchange value of the U.S. dollar.1 The staff made the changeover, from indexes that had been used since the late 1970s, for two reasons. First, five of the ten currencies in the staff’s previous main index of the dollar’s foreign exchange value were about to be replaced by a single new cur...