THE EFFECT OF EXCHANGE RATE FLUCTUATIONS ON ECONOMIC GROWTH CONSIDERING THE LEVEL OF DEVELOPMENT OF FINANCIAL MARKETS IN SELECTED DEVELOPING COUNTRIES
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 4
Abstract
This study aimed to investigate the effect of exchange rate fluctuations on economic growth considering the rate of development of financial markets in developing countries over the period 1986-2010. The effects of variables such as trading volume, inflation, and production of the previous period on economic growth have been studied as well. The results obtained by analyzing panel data of 18 countries show that the effect of financial development on economic growth as well as the effect of exchange rate fluctuation on economic growth are negative and significant. On the other hand, the mutual effect of exchange rate fluctuations and financial development on economic growth is positive, but the effect in the studied countries is so small that is not statistically significant.
Authors and Affiliations
Mehdi Basirat| Assistant Professor and Head of Economics Department, Science and Research Branch, Islamic Azad University, Khuzestan, Iran, Arezoo Nasirpour| MA student, Department of Economics, Science and Research Branch, Islamic Azad University, Khuzestan, Iran, Alireza Jorjorzadeh| Assistant Professor Department of Economics, Science and Research Branch, Islamic Azad University, Khuzestan, Iran
Keywords
Related Articles
- EP ID EP2025
- DOI -
- Views 415
- Downloads 34
TEST OF THE BANK LENDING CHANNEL FOR A BRICS COUNTRY
Based on a simultaneous-equation model of loan demand and loan supply and applying the three-stage least squares method, this paper finds that loan demand is negatively affected by the lending rate and positively associa...
THE EFFECT OF VALUATION RATIOS, GOLD PRICE, AND PETROLEUM PRICE ON EQUITY RETURNS: A COMPARISON OF STATIC PANEL AND QUANTILE REGRESSIONS
The purpose of this paper is to investigate to impact of valuation ratios, oil price changes and gold price changes on equity returns using static panel regression and quantile regression for 25 industrial firms at ISE (...
THE EFFECTS OF BOARD SIZE AND CEO DUALITY ON FIRMS’ CAPITAL STRUCTURE: A STUDY OF SELECTED LISTED FIRMS IN NIGERIA
This study examined the effects of board size and CEO Duality on the capital structure of listed firms in Nigeria. To achieve the objectives of this study, a total of 40 listed firms in the Nigerian stock exchange market...
Microfinance and Poverty Reduction in Ghana. The Case of Central Region of Ghana
The study evaluated Microfinance as a tool for poverty reduction in Ghana using central region as a case study. A survey design involving quantitative, qualitative and participatory methods within the framework of impact...
AN ANALYSIS OF MACROECONOMIC DETERMINANTS OF COMMERCIAL BANKS PROFITABILITY IN MALAYSIA FOR THE PERIOD 1995-2011
This paper investigates the macroeconomics factors that stimulate banks’ profitability. A standard regression model is used to identify macroeconomics determinants that significantly contribute to profitability, expresse...