The Impact of Expectations on International Trade: A Panel Data Analysis in the Framework of the Gravity Model

NUROĞLU, Elif (2009) The Impact of Expectations on International Trade: A Panel Data Analysis in the Framework of the Gravity Model. In: 1st International Symposium on Sustainable Development, June 9-10, 2009, Sarajevo, Bosnia and Herzegovina.

[img]
Preview
Text
ISSD2009-MANAGEMENT_p273-p277.pdf

*- Download (66kB) | Preview

Abstract

The objective of this paper is to investigate bilateral export flows and its determinants between European countries from 1964 to 1972 and from 1973 to 1998 to show how expectations affect the volume of international trade across European countries. This study extends the gravity model of bilateral trade with population and volatility of exchange rates. It is demonstrated that during fixed exchange rate period volatility in exchange rates has a very large impact on bilateral trade volumes, while the same change causes much lower decrease during floating exchange rate period.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: gravity model, panel data, fixed versus floating exchange rate
Subjects: H Social Sciences > HB Economic Theory
Depositing User: Users 4 not found.
Date Deposited: 03 Feb 2012 08:23
Last Modified: 02 Mar 2012 12:30
URI: http://eprints.ibu.edu.ba/id/eprint/220

Actions (login required)

View Item View Item