The impact of exchange rate volatility on trade integration among North and South Mediterranean countries Online publication date: Wed, 20-Aug-2014
by Nidal Rashid Sabri; Marga Peeters; Diama K. Abulaban
International Journal of Business and Globalisation (IJBG), Vol. 9, No. 2, 2012
Abstract: Timely after the increased exchange rate volatility caused by the global financial crisis, the Arab Spring and European sovereign debt crisis, this article investigates its impact on trade flows. With monthly data from 2000 up to 2011 we estimate by means of a vector auto regression model with eXogenous (VARX) variables the responses of bilateral exports and imports to exchange rate fluctuations between South and North Mediterranean economies. Our results show that the exports of goods from Egypt to the European Union decrease significantly in case of an appreciation of the Egyptian pound vis-à-vis the Euro, while the imports of Egypt from the EU increase to an even larger extent. The same results hold for Morocco, in case of a similar size appreciation of its domestic currency. Jordan is less import-dependent. We conclude that the impact of exchange rate volatility on trade is quite high.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Globalisation (IJBG):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook