Exchange Rate Volatility and International Trade: A Panel Data Analysis for Asian Countries
The purpose of this thesis is to investigate the impact of exchange rate volatility on aggregate foreign trade. We use annual data from 15 Asian countries over 30 years. The exchange rate volatility is derived primarily based on GARCH models and MASD. This thesis applies both the static fixed-effect panel data model and dynamic GMM model, then compares the obtained results and uses the OLS method