This study examines the asymmetric effects of Exchange Rate Volatility (ERV) on Vietnam’s international trade. Using time-series data fitted to the Nonlinear Autoregressive Distributed Lag (NARDL) model, we find that positive changes in ERV have a negative impact on the trade balance in the short-run. On the other hand, increases in ERV have a positive impact on the trade balance in the long-run. We also find that negative changes in ERV do not have any significant effect on the trade balance.
Truong, Loc Dong; Ngoc Le, Ha Hoang; and Vo, Dut Van
"THE ASYMMETRIC EFFECTS OF EXCHANGE RATE VOLATILITY ON INTERNATIONAL TRADE IN A TRANSITION ECONOMY: THE CASE OF VIETNAM,"
Bulletin of Monetary Economics and Banking: Vol. 25:
2, Article 4.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol25/iss2/4