The Influence of the Foreign Trade Balance on the Ron/Euro Exchange Rate in Romania Cover Image

The Influence of the Foreign Trade Balance on the Ron/Euro Exchange Rate in Romania
The Influence of the Foreign Trade Balance on the Ron/Euro Exchange Rate in Romania

Author(s): Consuela Necșulescu, Luminița Șerbănescu
Subject(s): National Economy, International relations/trade, Economic development, Financial Markets
Published by: Editura Universitaria Craiova
Keywords: RON/Euro exchange rate; foreign trade balance; OLS; depreciation; relationship; Augmented Dickey‐Fuller test;

Summary/Abstract: The purpose of this paper is to analyze the RON/Euro exchange rate in relation to one of the most important indicators of the national economy, namely the foreign trade balance which has a crucial influence on its behavior. The relationship between the foreign trade balance and the RON/Euro exchange rate is studied using linear regression models. The analysis of the link between the two indicators is performed on a set of 120 monthly data corresponding to the period January 2003 – December 2012.

  • Issue Year: 2013
  • Issue No: 20
  • Page Range: 241-246
  • Page Count: 6
  • Language: English