Developed Countries

Author(s)

Conclusion

Akhtar & Hilton (1984)

The exchange rate variability decreases the

volume of the global trade (in manufactured goods).

Kenen & Rodrik (1986)

The volatility of real exchange rates can weaken the volume of international trade. The familiarity with volatility differs among the countries of the study (Japan and Sweden have experienced more short-term volatility than European countries).

Asseery & Peel (1991)

The real exchange rate volatility has a noteworthy effect on exports for all countries in this study. For most countries the effect is positive.

Chowdhury (1993)

The exchange rate volatility has an important negative impact on the volume of exports in each G-7 country.

Arize (1997)

The exchange-rate volatility has a statistically substantial negative impact on the real exports of all seven countries which have been examined.

Arize & Shwiff (1998)

There is a serious long-run negative effect of exchange-rate uncertainty on the volume of imports in all G-7 countries (except Germany and Canada).

De Vita & Abbott (2004)

There is a distinctive cointegrating relationship among export volume, relative price, foreign income and real exchange rate volatility. The volatility has a statistically major impact on US exports.

Medhora (1990)

Either an undervalued or an overvalued currency, the fluctuations in the real exchange rate have efficiency consequences.

Bahmani-Oskooee & Ltaifa (1992)

The exchange rate uncertainty has diminished the volume of total exports of less-developed countries (and developed countries).

Bahmani-Oskooee (1996)

Exchange rate uncertainty has a major negative impact on the trade flows of the less developed countries.

Doroodian (1999)

The exchange rate uncertainty has a negative and significant effect on trade flows (for India, South Korea, and Malaysia).