The impact of exchange rate volatility on UK exports to EU countries

Glauco De Vita, Andrew Abbott

    Research output: Contribution to journalArticlepeer-review

    48 Citations (Scopus)

    Abstract

    This paper investigates the impact of exchange rate volatility on UK exports to European Union (EU) countries by means of a newly developed ARDL bounds testing procedure to cointegration. Using monthly data disaggregated by market of destination and sectors for the period 1993ml to 2001m6, our results indicate that UK exports to the EU14, at both aggregate and sectoral level, are generally income elastic, relative price inelastic and largely unaffected by short-term exchange rate volatility. Re-estimation of the model using a long-term measure of volatility, however, provides evidence supporting the hypothesis that exchange rate uncertainty has a negative and significant influence on UK exports to EU countries.
    Original languageEnglish
    Pages (from-to)62-81
    Number of pages20
    JournalScottish Journal of Political Economy
    Volume51
    Issue number1
    Early online date20 Jan 2004
    DOIs
    Publication statusPublished - Feb 2004

    Fingerprint

    Dive into the research topics of 'The impact of exchange rate volatility on UK exports to EU countries'. Together they form a unique fingerprint.

    Cite this