Skip to main content

The long-run relationship between the real exchange rate and terms of trade in OECD countries

Buy Article:

$47.50 plus tax (Refund Policy)

Using the null hypothesis of cointegration, it is shown that the real exchange rate and the terms of trade of the seven major OECD countries are cointegrated in the long run. Our results also confirm the Granger proposition that there is Granger causality in at least one direction when two variables are I(1) and cointegrated. We find that exchange rate changes Granger-cause changes in the terms of trade for five out of the seven OECD countries, while the causation runs in the opposite direction for the remaining two countries.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Document Type: Research Article

Publication date: 1996-09-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more