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

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  • EP ID EP2025
  • DOI -
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How To Cite

Mehdi Basirat, Arezoo Nasirpour, Alireza Jorjorzadeh (2014). THE EFFECT OF EXCHANGE RATE FLUCTUATIONS ON ECONOMIC GROWTH CONSIDERING THE LEVEL OF DEVELOPMENT OF FINANCIAL MARKETS IN SELECTED DEVELOPING COUNTRIES. Asian Economic and Financial Review, 4(4), 517-528. https://europub.co.uk/articles/-A-2025