Open AccessUnanticipated Exchange Rate Risk And U.S. Imports
Author(s) -
Abdul H. Sukar
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v10i4.5903
Subject(s) - cointegration , exchange rate , economics , foreign exchange risk , monetary economics , international economics , econometrics
The effect of exchange rate risk on trade is one of the more controversial issues in international trade. This paper uses cointegration and error-correction approach to investigate the relationship between unanticipated exchange rate risk and U.S. imports over the period 1974:1-1992:4. The major finding of this study is that the exchange rate risk has a significant negative impact on U.S. imports.