Singapore's Trade in Financial and Insurance Services and the Role of the Exchange Rate: An Asymmetric Analysis

Two studies have assessed the link between the exchange rate and trade in services. While one study concluded that the U.S. insurance and financial service trade is not affected by the exchange rate, another study reversed that finding by applying a non-linear method. We add to this literature by co...

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Bibliographic Details
Published inThe International trade journal Vol. 38; no. 2; pp. 171 - 183
Main Authors Bahmani-Oskooee, Mohsen, Halicioglu, Ferda, Karamelikli, Huseyin
Format Journal Article
LanguageEnglish
Published Laredo Routledge 03.03.2024
Taylor & Francis Ltd
Subjects
Asymmetric analysis
Financial services
Foreign exchange rates
International trade
real effective exchange rate
Singapore
Trade
trade in services
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Summary:Two studies have assessed the link between the exchange rate and trade in services. While one study concluded that the U.S. insurance and financial service trade is not affected by the exchange rate, another study reversed that finding by applying a non-linear method. We add to this literature by considering Singapore's experience. After estimating the linear and non-linear ARDL models using Singapore's imports and exports of insurance and financial service trade, we conclude that changes in the real effective value of the Singapore dollar have both short-run and long-run effects on Singapore's trade in both services.
ISSN:0885-3908
1521-0545
DOI:10.1080/08853908.2023.2165202