Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2019.1708771
The impact of the exchange rate on the foreign trade imbalance during the economic crisis in the new EU member states and the Western Balkan countries
Miloš Rajković
Predrag Bjelić
Danijela Jaćimović
Miroslav Verbič
orcid.org/0000-0001-5506-0973
Sažetak
This paper examines the relationship between the real exchange
rate and the foreign trade imbalance in both the Western Balkan
(WB) and Central and Eastern European (CEE) countries. During
the most recent global economic crisis, examining the impact of
the exchange rate on the balance of trade took on a particular
importance. Countries used a variety of monetary policy regimes
and, depending on their choice, they had different economic
instruments available to deal with the crisis. The aim of the
research was whether exchange rate devaluation and/or depreciation
are capable of effectively and fully eliminating the negative
effects of the global economic crisis, as well as the consequent
poor export performance and contracted economic activity. Our
findings show that during an economic crisis those countries that
use their own currency cannot substantially adjust their trade deficit
by depreciating their currency. Moreover, it is suggested that
during the global economic crisis, the balance of payments deficit
is not impacted significantly by the exchange rate, any more. In
such cases, other factors play a more significant role, like as government
spending, followed by foreign demand and direct
investments.
Ključne riječi
Exchange rate; Western Balkans; Central and Eastern Europe; balance of trade; economic crisis; budget deficit
Hrčak ID:
254371
URI
Datum izdavanja:
9.2.2021.
Posjeta: 883 *