Brazil, Russia, India, China and South Africa, Maradiaga et al.

, (2012) found a mix of

orders of integration. Hence to estimate an export demand equation it was opted for

the TYDL procedure to test for Granger non-causality the effect of exchange rate

volatility on exports. The conclusions were no effects, except for China which effect

was even positive and significant. It is surprising that we have not yet found another

study that applies the TYDL procedure to this issue. Thus we extend Maradiaga et al.,

(2012) by including new unit root test developments and higher frequency data

(quarterly instead of annual) that will give more degrees of freedom to the TYDL

model. Also the analysis is extended beyond the five listed countries to include

Turkey and Honduras.

This literature is far from exhaustive but emphasized the diversity of

methodologies and case-studies that have been employed to empirically unveil

relationships between currency exchanges and exports. An interested reader may

want to refer to the review works of McKenzie (1999), and Bahmani-Oskooee and

Hegerty (2007). These authors show numerous studies using different approaches and

applications to several countries (e.g., developed, emerging, and LDC), data spans,

data frequencies (annual, quarterly, and monthly), trade flows (e.g., aggregate,

bilateral, and sector specific), series transformations (e.g., nominal and real, first

differences, log differences, etc.), exchange rates (exchange rates and real effective

exchange rates), volatility measures (e.g., moving standard deviation, coefficient of

variation, and GARCH), economic models (e.g., gravity models, income and

substitution effects, and export demand models), econometric procedures (OLS;

SUR; VAR; Co-integration: Engle-Granger, Johansen). In spite of a vast literature on

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