Open AccessExchange rate volatility and exports: a panel data analysis for 5 ASEAN countries
Author(s) -
Sri Subanti,
Arif Rahman Hakim,
Asri Laksmi Riani,
Inaki Maulida Hakim,
Muhammad Safar Nasir
Publication year - 2019
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1217/1/012089
Subject(s) - exchange rate , economics , volatility (finance) , panel data , international economics , monetary economics , econometrics
The study of the effects of exchange rate volatility has still attracted the attention among economist, especially international economist. Because, if the exchange rate is unpredictable, it makes uncertainty about the profits to be gained, so this conditions may diminish the gain from international trade. In addition, some empirical literature provides various findings, where the exchange rate volatility has a positive effect on exports and can also negatively effect on exports. This paper wants to provide empirical evidence on both of these. It uses panel data involving five ASEAN countries with a period of 2000 – 2016. We also apply some analysis in panel data, such as the pooled least squares method, the fixed effect method, and the random effect method. The findings show that the exchange rate volatility has negative impact on exports. This paper suggests that each of central bank should pursue sustainable and stable exchange rate policy measures to promote greater exchange rate stability that would help to enhance the real exports of the economy.