ISSN:
0144-3585
Source:
Emerald Fulltext Archive Database 1994-2005
Topics:
Economics
Notes:
Purpose - To avoid aggregation bias by using trade data at bilateral level so that we can determine how sensitive are Britain's inpayments and outpayments to the value of the British pound. Design/methodology/approach - The method is based on the bounds testing approach to cointegration and error-correction modeling. Findings - The main finding is that while UK inpayments are not sensitive to the exchange rate, her outpayments are. Research limitations/implications - Future research must concentrate on disaggregating data further, perhaps at commodity level. Practical implications - The results could be used to identify Britain's trading partners against which Britain can devalue the pound and improve her trade balance. Originality/value - No study has attempted to test the impact of real depreciation of the pound on Britain's payments and receipts with her major trading partners.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1108/01443580510631360
