| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 982988 | Procedia Economics and Finance | 2014 | 8 Pages |
Abstract
The aim of the paper is to investigate the impact of exchange rate development on bilateral trade flows between Czech Republic and its major trading partners. This paper explores J-curve pattern and relationship between exchange rate volatility and trade flows using quarterly data over the period 1997 – 2012. We employ a Johansen cointegration test to analyze the long run relationship. Short term effects are explored by estimating an error correction model and by assessing impulse-response functions. We reveal J-curve for trade with France and an inverse J-curve for Slovakia and United Kingdom. Volatility has no clear impact on trade flows.
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