TITLE

The Impact of Exchange Rate Fluctuation on Trade Balance in the Short and Long Run

AUTHOR(S)
Pham Thi Tuyet Trinh
PUB. DATE
December 2014
SOURCE
Journal of Southeast Asian Economies;Dec2014, Vol. 31 Issue 3, p432
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper investigates the short- and long-run impact of the real exchange rate on trade balance in Vietnam from 2000 to 2010. The Autoregressive Distributed Lag (ARDL) method is used to explore the long-run impact, and a corresponding Error Correction Model (ECM) based on a long-run cointegration equation examines the impact on trade balance when a real depreciation of the VND has occurred. An Impulse response function based on the ECM exhibits that trade balance takes on a J-curve pattern in the event of a permanent depreciation.
ACCESSION #
100043376

 

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