How do exchange rates affect the Big One? An empirical analysis of the effect of exchange rates on RCEP exports using the gravity model

The often disparate and conflicting effects of exchange rate on bilateral exports reported by previous literature necessitate a further study the relationship between monetary trade variables. This contributes to stream analyzing variables such as volatility, misalignment, regimes, real effective rates with aggregate through sample 15 nations comprising Regional Comprehensive Economic Partnership (RCEP) region for years 1996 2017 using Ordinary Least Squares Poisson Pseudo-Maximum Likelihood panel fixed regression. Results indicate that country’s ratio volatility countries under floating regime reduce exports.