How sensitive are Britain's inpayments and outpayments to the value of the British pound
Year: 2005
Type: article
Abstract: 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.
Source: Journal of Economic Studies
Institution: University of Wisconsin–Milwaukee
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2012335651