Remoteness and Real Exchange Rate Volatility

• Record Nr.: UNINA9910819874403321
• Pubbl/distr/stampa: Washington, D.C. : , : International Monetary Fund, , 2005
• ISBN: 1-4623-8213-4; 1-4527-9760-9; 1-282-04440-0; 1-4519-0556-4; 9786613797544
• Edizione: [1st ed.]
• Descrizione fisica: 1 online resource (21 p.)
• Collana: IMF Working Papers
• Soggetti: Foreign exchange rates - Econometric models; Comparative advantage (International trade); Aggregate Factor Income Distribution; Currency; Exchange rate adjustments; Exports and Imports; Exports; Foreign Exchange; Foreign exchange; Income; International economics; International Finance: General; International Trade Organizations; International trade; Macroeconomic Aspects of International Trade and Finance: General; Macroeconomics; National accounts; Public finance & taxation; Real exchange rates; Tariff; Tariffs; Taxation; Taxes; Trade Policy; Trade: General; United States
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: "January 2005."
• Nota di bibliografia: Includes bibliographical references (p. 19-20).
• Nota di contenuto: ""Contents""; ""I. INTRODUCTION""; ""II. TWO-COUNTRY MODEL""; ""III. EMPIRICAL EVIDENCE""; ""IV. CONCLUSION""; ""APPENDIX""; ""REFERENCES""
• Sommario/riassunto: This paper examines the impact of trade costs on real exchange rate volatility. The channel is examined by constructing a two-country Ricardian model of trade, based on the work of Dornbusch, Fischer, and Samuelson (1977), which shows that higher trade costs result in a larger nontradable sector. This, in turn, leads to higher real exchange rate volatility. We provide empirical evidence supporting the channel.