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Remoteness and Real Exchange Rate Volatility

Abstract
This paper examines the impact of trade costs on real exchange rate volatility. The channel is examined by constructing a two-country Ricardian model of trade, based on the work of Dornbusch, Fischer, and Samuelson (1977), which shows that higher trade costs result in a larger nontradable sector. This, in turn, leads to higher real exchange rate volatility. We provide empirical evidence supporting the channel
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. TWO-COUNTRY MODEL""; ""III. EMPIRICAL EVIDENCE""; ""IV. CONCLUSION""; ""APPENDIX""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
"January 2005."
Physical Description
1 online resource (21 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781452797601

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