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Exchange rate uncertainty, UK trade and the euro

Author

Listed:
  • Charalambos Pattichis
  • Chongcheul Cheong
  • Tesfa Mehari
  • Leighton Vaughan Williams

Abstract

The impact of exchange rate uncertainty on the disaggregated imports of the UK is investigated by focusing on 15 major manufacturing categories. Contrary to several previous theoretical and empirical studies, this paper finds no evidence that exchange rate uncertainty has a positive impact on international trade. An important implication of this study for UK macroeconomic policy is that adoption of the euro would have, in terms of its effect on exchange rate risk, a positive impact on the country's trade and economic welfare.

Suggested Citation

  • Charalambos Pattichis & Chongcheul Cheong & Tesfa Mehari & Leighton Vaughan Williams, 2004. "Exchange rate uncertainty, UK trade and the euro," Applied Financial Economics, Taylor & Francis Journals, vol. 14(12), pages 885-893.
    • Handle: RePEc:taf:apfiec:v:14:y:2004:i:12:p:885-893
    DOI: 10.1080/09603100410001685321
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    References listed on IDEAS

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    Cited by:

    1. Dimitrios Serenis & Paul Serenis, 2010. "Exchange Rate Volatility, the E.U. and Sectoral Exports: New Empirical Evidence from the Chemical Sector (1973-2005)," Research in World Economy, Research in World Economy, Sciedu Press, vol. 1(1), pages 47-55, November.
    2. Chien-Chung Nieh & Jeng-Bau Lin & Yu-shan Wang, 2008. "Exchange rate uncertainty and corporate values: evidence from Taiwan," Applied Financial Economics, Taylor & Francis Journals, vol. 18(14), pages 1181-1192.
    3. Jonathan M. Chipili, 2013. "Exchange Rate Volatility and Trade Flows in Zambia," African Development Review, African Development Bank, vol. 25(1), pages 55-66, March.

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