The Effect of Changes in Foreign Exchange Rate to Vietnam’s Trade Balance

Abstract

This study is conducted based on secondary data as well as quantitative methods to reach the goal of examining the impacts of changes of real effective exchange rates on Vietnam’s trade balance in the period of ten years from 2005 to 2014. To be more specific, in order to analyze the collected quarterly data, the authors approach Autoregressive Distributed Lag model to identify the level of effects in both short-term and long-term.