EXCHANGE RATE RISK AND EXPORT REVENUE IN TAIWAN |
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| Authors: | Wen Shwo Fang Henry Thompson |
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| Institution: | Feng Chia University, Taiwan; Auburn University, USA |
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| Abstract: | Abstract. The effect of exchange rate risk on export revenue in Taiwan between 1979 and 2001 is investigated in a bivariate GARCH-M model that simultaneously estimates time-varying risk. Depreciation is found to stimulate export revenue in domestic currency, but the quantitative impact is small and any associated increase in exchange risk has a negative impact. Implications for economic policy are discussed. |
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