@article{MAKHILLJEAS2019141317998,
    title = {Application of Nonlinear Autoregressive Distributed Lag (NARDL) Model for
Analysis of the Asymmetric Effects of Real Exchange Rate Volatility on
Vietnam’s Trade Balance},
    journal = {Journal of Engineering and Applied Sciences},
    volume = {14},
    number = {13},
    pages = {4317-4322},
    year = {2019},
    issn = {1816-949x},
    doi = {jeasci.2019.4317.4322},
    url = {https://makhillpublications.co/view-article.php?issn=1816-949x&doi=jeasci.2019.4317.4322},
    author = {Le Hoang,Ho Hoang Gia and},
    keywords = {Nonlinear ARDL,asymmetric effects,exchange rate,trade balance,Vietnam,VND},
    abstract = {Since, it was proposed by Shin, Yu and Greenwood-Nimmo (Festschrift in honor of Peter Schmidt:
econometric methods and applications, Springer) the Nonlinear Autoregressive Distributed Lag (NARDL)
approach originated from Pesaran, Shin and Smith has been employed by manifold recent studies to scrutinize
the asymmetrical causality between independent and dependent variables. Expressly, NARDL is regarded as
an appropriate method for examining whether the effects of exchange rate depreciation and exchange rate
appreciation on trade balance are distinguishable which might be an imperative of Foreign trade policies. Phong,
Bao and Van (Studies in computational intelligence: Econometrics for financial applications, Springer) evaluates
the impact of exchange rate volatility on Vietnam’s trade balance using the linear ARDL approach of
Pesaran <i>et al</i>. and finds significant results. This study ameliorates our previous research by testing asymmetric
effects of Vietnam&#146;s exchange rate volatility on trade balance using NARDL approach. The findings denote that
short-run and long-run exchange rate volatility considerably impacts the trade balance of Vietnam. Indubitably,
the trade balance of Vietnam responds more strongly to VND depreciation than to VND appreciation.}
    }