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  • The aim of this paper is to investigate the effect of exchange rate volatility on bilateral trade flows between the Czech Republic and its major trading partners. For this purpose we employ extended trade gravity model approach. Trade volume between a pair of countries is modeled as an increasing function of their sizes (GDP) and a decreasing function of the distance between the two countries. Additional factors included in extended model are population, dummies for common border; membership in EU and proxy for exchange rate volatility. Generally is expected that increased exchange rate volatility increases the risk of exporters and reduces foreign trade. This paper explores relationship between trade and exchange rate volatility using quarterly data over the period 1997:1 - 2012:2. In order to obtain the objective result, we use the panel data regression with 17 trading partners. Based on a gravity model that controls for other factors likely to determine bilateral trade, the results suggest that nominal exchange rate volatility of Czech koruna has a significant negative effect on bilateral trade over the sample period.
  • The aim of this paper is to investigate the effect of exchange rate volatility on bilateral trade flows between the Czech Republic and its major trading partners. For this purpose we employ extended trade gravity model approach. Trade volume between a pair of countries is modeled as an increasing function of their sizes (GDP) and a decreasing function of the distance between the two countries. Additional factors included in extended model are population, dummies for common border; membership in EU and proxy for exchange rate volatility. Generally is expected that increased exchange rate volatility increases the risk of exporters and reduces foreign trade. This paper explores relationship between trade and exchange rate volatility using quarterly data over the period 1997:1 - 2012:2. In order to obtain the objective result, we use the panel data regression with 17 trading partners. Based on a gravity model that controls for other factors likely to determine bilateral trade, the results suggest that nominal exchange rate volatility of Czech koruna has a significant negative effect on bilateral trade over the sample period. (en)
Title
  • Extended Gravity Model of International Trade: An Empirical Application to Czech Trade Flows
  • Extended Gravity Model of International Trade: An Empirical Application to Czech Trade Flows (en)
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  • Extended Gravity Model of International Trade: An Empirical Application to Czech Trade Flows
  • Extended Gravity Model of International Trade: An Empirical Application to Czech Trade Flows (en)
skos:notation
  • RIV/47813059:19520/13:#0002265!RIV14-MSM-19520___
http://linked.open...avai/riv/aktivita
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  • S
http://linked.open...vai/riv/dodaniDat
http://linked.open...aciTvurceVysledku
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  • 74367
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  • RIV/47813059:19520/13:#0002265
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  • bilateral trade; exchange rate; gravity model; volatility (en)
http://linked.open.../riv/klicoveSlovo
http://linked.open...ontrolniKodProRIV
  • [C037B085AB43]
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  • Ostrava
http://linked.open...i/riv/mistoVydani
  • Karviná
http://linked.open...i/riv/nazevZdroje
  • Financial Regulation and Supervision in the After-Crisis Period. Proceedings of 13th International Conference on Finance and Banking
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http://linked.open...cetTvurcuVysledku
http://linked.open...UplatneniVysledku
http://linked.open...iv/tvurceVysledku
  • ŠIMÁKOVÁ, Jana
http://linked.open...vavai/riv/typAkce
http://linked.open.../riv/zahajeniAkce
number of pages
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  • Silesian University, School of Business Administration
https://schema.org/isbn
  • 978-80-7248-892-6
http://localhost/t...ganizacniJednotka
  • 19520
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