This document is an abstract from the 5th International Conference on Economics, Finance and Management Outlooks summarizing a paper that analyzed the impact of exchange rate volatility on exports growth in selected developing countries. The paper found that in the short-run, exchange rate volatility carries a negative impact, but in the long-run it carries a positive impact. At the individual country level, the short-run impact was negative for Bangladesh and China, and insignificant for the other countries. In the long-run, the impact was negative for Bangladesh and China, and positive for Indonesia and Thailand. Real depreciation of a country's currency was found to enhance exports, as expected, in Bangladesh, Malaysia, and at the panel level,

1. Abstract of Economics, Finance and Management Outlooks, 2016, Vol.5
DOI: 10.18488/journal.1003/2016.5/1003.5
5th
International Conference on Economics, Finance
and Management Outlooks
6-7 June, 2016
Nippon Hotel, İstanbul-Turkey
Conference Website: www.pakrdw.com
21
Paper ID: 724/16/5
st
ICEFMO
Exchange Rate Volatility and Exports Growth: A Case of
Selected Developing Economies
Rana Ejaz Ali Khan1
--- Muhammad Muzammil2
--- Shakeela Bibi3
1,2,3
The Islamia University of Bahawalpur, Bahawalpur. Pakistan
Abstract
This paper analyses the impact of exchange rate volatility on exports growth of the
selected developing countries (Bangladesh, India, Pakistan, Sri Lanka, China,
Malaysia, Indonesia, Thailand and Turkey) by using the panel as well as individual co-
integration techniques. In short-run analysis of panel data, exchange rate volatility
carries negative and in the long run interestingly positive impact on growth of exports in
developing economies. At disintegrate level in the short run it carries negative
influence for Bangladesh and China while all other countries shows insignificant impact
exchange rate volatility on export growth. In the long-run analysis Bangladesh and
China show negative impacts while Indonesia and Thailand shows positive impact of
exchange rate volatility on growth of exports. Real depreciation of the domestic
currency reflects a decrease in real exchange rate, as expected to enhance an
economy’s exports if estimated elasticity is negative and significant. It is supported in
Bangladesh, Malaysia and in panel case. The estimates of the long run coefficients are
reliable only if co-integration among these variables does exist. In our study, co-
integration (in other words, the joint significance of lagged level variables) is supported
in all countries except Bangladesh, Sri Lanka and China.
Keywords: Product innovation, Process innovation, Performance, Income, Interest rate spread, First
Mover, Imitation.
JEL Classification: G21, G28, O31, C33, C36, E43.