Industry-Level Asymmetries in Korea-Indonesia Trade and Exchange Rates

This study assesses the asymmetric impact of bilateral exchange rates on trade flows between Korea and Indonesia. Focusing on 10 major industries, we analyze how the rise and fall of bilateral exchange rates affect exports and imports. The results indicate that bilateral exchange rates have a greater asymmetric impact on imports than exports in the long run. However, in the short run, the effect is greater on exports than imports. These findings provide a nuanced understanding of the asymmetric effects of bilateral exchange rates and contribute to the effective design and management of strategic economic policies.