Dublin Core
Title
The Impact of Expectations on International Trade: A Panel Data Analysis in the Framework of the Gravity Model
Abstract
The objective of this paper is to investigate bilateral export flows and its determinants between European countries from 1964 to 1972 and from 1973 to 1998 to show how expectations affect the volume of international trade across European countries. This study extends the gravity model of bilateral trade with population and volatility of exchange rates. It is demonstrated that during fixed exchange rate period volatility in exchange rates has a very large impact on bilateral trade volumes, while the same change causes much lower decrease during floating exchange rate period.
Keywords
Conference or Workshop Item
PeerReviewed
PeerReviewed
Date
2009-06
Extent
220