One of the most important policies concerning the adjustment of foreign trade is to allocate foreign currency by establishing an exchange control system. The mechanism of this would be so that the Central Bank operates or supervises all transactions concerning foreign exchange. However, the controlling system, like all other international systems of payment, operates with some adjustments and i...

Does leaving a currency union reduce international trade? We answer this question using a large annual panel data set covering 217 countries from 1948 through 1997. During this sample a large number of countries left currency unions; they experienced economically and statistically significant declines in bilateral trade, after accounting for other factors. Assuming symmetry, we estimate that a ...

We analyze the effect of risk aversion, wealth and portfolios on the behavior of investors in a global game model of currency crises with continuous action choices. The model generates a rich set of striking theoretical predictions. For example, risk aversion makes currency crises significantly less likely; increased wealth makes crises more likely; and foreign direct investment (illiquid inves...

the frequent occurrence of currency crises in recent years brought the early warning literature back in the researchers spotlight. in recent years, concept of an early warning system (ews) developed that should be able to identify various costly events, such as currency crises, early enough for policy makers to reduce the costs. this study attempted by using iran's economy quarterly data d...

A favorable trade balance is a positive indicator for emerging economies, and rectifying imbalances paramount every country. However, fixing deficits by depreciating the currency misguided policy approach. This study refutes this myth computing elasticity of Pakistan's exports, imports, using real exchange rate. It also examines degree to which elasticities respond changing regimes rate policie...

The debate on trade and currency wars has reemerged since the Global Financial Crisis. We study two forms of noncooperative policies within a single framework. First, we compare elasticity flows to import tariffs real exchange rate, based product-level data for 110 countries over 1989–2013 period. find that 1% depreciation importer's reduces imports by around 0.5% in current dollar, whereas an ...

This paper develops a new instrumental-variable (IV) approach to estimate the effects of different exchange rate regimes on bilateral outcomes. The basic idea is that the characteristics of the exchange rate regime between two countries (exchange rate variability, fixed or float, autonomous or common currencies) are partially related to the independent decisions of these countries to peg —expli...

Gravity-based cross-sectional evidence indicates that currency unions stimulate trade; crosssectional evidence indicates that trade stimulates output. This paper estimates the effect that currency union has, via trade, on output per capita. We use economic and geographic data for over 200 countries to quantify the implications of currency unions for trade and output, pursuing a two-stage approa...

In today's market, the global competition has put manufacturing businesses in great pressures to respond rapidly to dynamic variations in demand patterns across products and changing product mixes. To achieve substantial responsiveness, the manufacturing activities associated with production planning and control must be integrated dynamically, efficiently and cost-effectively. This paper presen...