Why you should use high frequency data to test the impact of exchange rate on trade |
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| Authors: | Karam Shaar |
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| Institution: | School of Economics and Finance, Victoria University of Wellington, Wellington, New Zealand |
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| Abstract: | This study suggests that testing the impact of exchange rate on trade should be done using high-frequency data. Using different data frequencies for identical periods and specifications between the US and Canada, we show that low-frequency data might suppress and distort the evidence of the impact of exchange rate on trade in the short run and the long run. |
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| Keywords: | Data frequency exchange rate and trade J-curve theory ARDL co-integration US–Canada trade |
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