The impact of the effective exchange rate volatility on the trade balance of Vietnam
DOI:
https://doi.org/10.34117/bjdv10n4-043Keywords:
exchange rate volatility, trade of balance, Vietnam, supply chainAbstract
This paper examines the effect of exchange rate volatility and other factors on trade balance of Vietnam in the period from the first quarter in 2000 to the fourth quarter in 2016. The data of exports, imports, Gross Domestic Product of Vietnam and Gross Domestic Product of partners from International Monetary Fund is used in this research. The results show that a stable long-term equilibrium relationship exists between exports. Exchange rate volatility could increase the export value but Gross Domestic Product of partners had significant negative effect on the export. The Gross Domestic Product of Vietnam increase the import value but the effect of the exchange rate volatility on the import value is found not significant. Finally, the flexible control of State Bank on exchange rate volatility will enhance Trade Balance of Vietnam.
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