The Impact of the US Dollar's Volatility on Taiwanese Economy - A Case of Export-led Growth

According to the trading records over decades, Taiwanese economy seems to be long dependent on the U.S. market and hence it is suggested that exchange rate uncertainty has a long-term effect on exports. The proxy of volatility in this study is measured using three techniques including the GARCH (1,1...

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Main Author: Fu, Janice
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2005
Online Access:https://eprints.nottingham.ac.uk/20002/
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author Fu, Janice
author_facet Fu, Janice
author_sort Fu, Janice
building Nottingham Research Data Repository
collection Online Access
description According to the trading records over decades, Taiwanese economy seems to be long dependent on the U.S. market and hence it is suggested that exchange rate uncertainty has a long-term effect on exports. The proxy of volatility in this study is measured using three techniques including the GARCH (1,1) procedure, the ordinary moving average method and a moving average standard deviation approach. The real exchange rate is employed throughout the study in order to reflect the property of the exchange rate over time. A striking result is found in this study. Whereas the long-term relationship between economic fundamentals and the export volume at both of aggregate and disaggregated levels is suggested by Johansen's cointegration approach, a further cointegration test using ARDL procedure largely disapproves the result. As a result, exchange rate volatility contributes minimal impact to the export volumes irrespective of the method by which it is derived from, and also ambiguous long-term relationship is discovered during various tests. The result tends to reject the hypotheses that exchange rate volatility is of significant effect on Taiwan's economy and that the economic fundamentals have long-term relationship with export volumes to the U.S. market.
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spelling nottingham-200022022-03-21T15:27:16Z https://eprints.nottingham.ac.uk/20002/ The Impact of the US Dollar's Volatility on Taiwanese Economy - A Case of Export-led Growth Fu, Janice According to the trading records over decades, Taiwanese economy seems to be long dependent on the U.S. market and hence it is suggested that exchange rate uncertainty has a long-term effect on exports. The proxy of volatility in this study is measured using three techniques including the GARCH (1,1) procedure, the ordinary moving average method and a moving average standard deviation approach. The real exchange rate is employed throughout the study in order to reflect the property of the exchange rate over time. A striking result is found in this study. Whereas the long-term relationship between economic fundamentals and the export volume at both of aggregate and disaggregated levels is suggested by Johansen's cointegration approach, a further cointegration test using ARDL procedure largely disapproves the result. As a result, exchange rate volatility contributes minimal impact to the export volumes irrespective of the method by which it is derived from, and also ambiguous long-term relationship is discovered during various tests. The result tends to reject the hypotheses that exchange rate volatility is of significant effect on Taiwan's economy and that the economic fundamentals have long-term relationship with export volumes to the U.S. market. 2005 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20002/1/janicefinal.pdf Fu, Janice (2005) The Impact of the US Dollar's Volatility on Taiwanese Economy - A Case of Export-led Growth. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Fu, Janice
The Impact of the US Dollar's Volatility on Taiwanese Economy - A Case of Export-led Growth
title The Impact of the US Dollar's Volatility on Taiwanese Economy - A Case of Export-led Growth
title_full The Impact of the US Dollar's Volatility on Taiwanese Economy - A Case of Export-led Growth
title_fullStr The Impact of the US Dollar's Volatility on Taiwanese Economy - A Case of Export-led Growth
title_full_unstemmed The Impact of the US Dollar's Volatility on Taiwanese Economy - A Case of Export-led Growth
title_short The Impact of the US Dollar's Volatility on Taiwanese Economy - A Case of Export-led Growth
title_sort impact of the us dollar's volatility on taiwanese economy - a case of export-led growth
url https://eprints.nottingham.ac.uk/20002/