This research analyses the relationship between real effective exchange rates and trade balance changes in the presence of differing levels of global value chain complexity and fragmentation in a...Show moreThis research analyses the relationship between real effective exchange rates and trade balance changes in the presence of differing levels of global value chain complexity and fragmentation in a large sample of economies using a variety of quantitative analysis techniques (ordinary least square regression, two-stage least squares regression, fixed effects regression, and panel vector autoregression). The research expects economies which are more integrated into global value chains, with larger greater global value chain complexity, to have a weaker relationship between real effective exchange rates and trade balances changes. The results of the quantitative analysis find a weaker relationship between the two variables and suggests some potential effects that this will have on debates within global political economy.Show less
