Exchange Rate Volatility and Exports for Selected East Asian Countries: Evidence from Error Correction Model‪.‬

I. Introduction Exchange rate volatility is a form of risk and obstacle to international trade. Since the breakdown of the Bretton-Wood agreement, the trading nations have embraced a regime of floating exchange rate determination. This transition brought up the issue of exchange rate volatility in general and its impact on foreign trade in particular, and it has been the subject of numerous studies. In addition, the experience of currency crash in Thailand and the Asian financial crisis have led to explosive research on the causes and impacts on temporal exchange rate volatility. Previous literature studies have been inconclusive; most hold the notion that exchange rate uncertainty has either positive or negative effects on trade volume.