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Article: Uncertainty and export performance: evidence from 18 countries.
- Article from:
- Journal of Money, Credit & Banking
- Article date:
- June 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Ohio State University Press. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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DOES UNCERTAINTY MATTER FOR TRADE? Should countries attempting export led growth fear floating exchange rates because they are less predictable? Does uncertainty have different effects depending on the financial development or wealth of the country studied? Since foreign demand is another important determinant of exports, why do we not study the effects of foreign demand uncertainty in parallel with those of exchange rate uncertainty?
In this paper we seek to provide some answers to these questions. It is well known that theory does not uniquely pin down the sign of the exchange rate uncertainty--export relationship. It is also true that the existing empirical ...