Journal article
Exchange rate regimes and trade
- Abstract:
- A 'new version' of the gravity model is used to estimate the effect of a full range of de facto exchange rate regimes on bilateral trade. The results indicate that, while participation in a common currency union is typically strongly ‘pro-trade’, other exchange rate regimes which lower the exchange rate uncertainty and transactions costs associated with international trade are significantly more pro-trade than the default regime of a ‘double float’. They suggest that the direct and indirect trade-creating effects of these regimes on uncertainty and transactions costs tend to outweigh the trade-diverting substitution effects. Tariff-equivalent monetary barriers associated with each exchange rate regime are also calculated.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
Actions
Access Document
- Files:
-
-
(Preview, Accepted manuscript, pdf, 198.0KB, Terms of use)
-
- Publisher copy:
- 10.1111/j.1467-9957.2007.01037.x
Authors
- Publisher:
- Wiley
- Journal:
- Manchester School More from this journal
- Volume:
- 75
- Issue:
- S1
- Pages:
- 44–63
- Publication date:
- 2007-01-01
- DOI:
- EISSN:
-
1467-9957
- ISSN:
-
1463-6786
- UUID:
-
uuid:4e868336-bb0a-4d55-a8f7-1b95cadfd8e9
- Local pid:
-
daisy:1404
- Source identifiers:
-
1404
- Deposit date:
-
2012-08-07
Terms of use
- Copyright holder:
- Adam and Cobham
- Copyright date:
- 2007
- Notes:
- This is the peer reviewed version of the following article: Adam, C. and Cobham, D. (2007), EXCHANGE RATE REGIMES AND TRADE. The Manchester School, 75: 44–63, which has been published in final form at http://dx.doi.org/10.1111/j.1467-9957.2007.01037.x. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
If you are the owner of this record, you can report an update to it here: Report update to this record