NSU Research Contributions

Title : Exchange Rate Sensitivity of the Canadian Bilateral In-payments and Out-payments

Authors : Mohsen Bahmani-Oskooee, Gour Goswamil, Bidyut Talukdar

Journal Title: Economic Modelling	Volume Number: 22	Publication Year : 2005	Issue Number: 4
Index: scopus	Ranking: Q1	ISSN: 02649993	Publisher Name: Elsevier
Pages : 745-757

Funding Information:

Funding Source : None

Other Information:

Direct Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure	Indirect Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure	Sustainable Development Sub Goals : Develop quality, sustainable infrastructure Promote inclusive and sustainable industrialization Increase the access of small-scale industrial enterprises to financial services and value chains Support domestic technology development & innovation
Impact statement: The traditional way of assessing the impact of currency depreciation on the trade balance has been to estimate the import and export demand elasticities using aggregate trade data and check the Marshall–Lerner condition. To reduce the aggregation bias, the trend now is to estimate these elasticities on a bilateral basis. However, due to a lack of data on bilateral import and export prices, the new models relate import and export values directly to the exchange rate. In this paper, we estimate such models between Canada and its 20 largest trading partners using recent advances in time-series modeling. The results reveal that, in many cases, export values (inpayments) are not sensitive to the exchange rate, whereas import values (outpayments) are.	Collaboration: Partner University	Keywords: Canada, Bilateral Inpayments, Bilateral Outpayments, Trade Balance Modeling