The Effect of Exchange Rate Changes on Belarus. Trade Balance
This study tests the impact of real effective exchange rate changes on Belarusian trade balance. The findings suggest that depreciation has a short-run and long-run positive effect on trade balance. The negative immediate impact of exchange rate depreciation can be explained at the same vein as in numerous papers examining the short-run and long-run relationship between exchange rate changes and trade balance by existence of the lag in the time during which consumers and producers adjust to a new buying patterns, and asymmetries between the changes in export and import prices.