What Determines Real Exchange Rates? Evidence from Asia
Journal Title: Saudi Journal of Business and Management Studies - Year 2017, Vol 2, Issue 11
Abstract
Abstract:This study examines the macroeconomic factors which are affecting to real effective exchange rates (REER) from selected ten countries in Asia. Two panel regression approaches namely fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS) and fixed effects are applied using panel data over the period 2002–2016. Empirical results show that presence of a significant long-term association amongst the REER and seven macroeconomic determents namely interest rate, inflation, trade balance, terms of trade, trade openness, foreign reserves and share price index and their significance are remaining same in all models applied. However, trade balance has a positive connection with the REER while other significant variables have a negative association with the REER in long run. Moreover, the money supply (M2) and real gross domestic production (GDP) do not show a significant relationship with the REER. Keywords:Asia, DOLS, Macroeconomic Fundamentals, FMOLS, Long run, REER JEL Classifications: F31, F41, C33
Authors and Affiliations
DileshaNawadali Rathnayake, Gang Sun, NingDing
Systematic Investigation of Influential Adopting Factors of Software as a Service (SaaS) in SMEs
Abstract:Cloud computing is a new technological paradigm that offers very powerful computing and cost effective, scalable network services to its end-users / organizations without considering the firm size. Aim of this s...
Status of Private University Students in the Eye of Employers
Abstract:The study has investigated the status of private university students in the eye of employers. The study collected information from 16 employers who are directly or indirectly involved in hiring process through o...
Reviewing the Quality of Banking Services in Jordanian Commercial Banks
Abstract: Banking service characterized by its importance in various fields, economic, social and civilization…etc. So it had to be interest in the quality of this service. As the bank was not able to achieve competitive...
Accountability and Integrity in Managing School Finance: A Study in Secondary Schools under Responsibility Center Status in One of Malaysian Districts
Abstract: This study investigated the relationship between the levels of accountability and integrity of school financial management and the factors that affect levels of accountability and integrity. Selected respondent...
Patterns of Stock Returns in Indonesia from 2003 To 2008
Abstract:This study examines the pattern of stock returns in the Indonesian stock market. Using the GARCH (1,1) model, the study investigates the effects of day-of-the-week, month-of-the-year and monthly on the daily ret...