The Exchange Rate in the Adjustment Process of Less Developed Countries — A Multifarious Role

1989 ◽  
pp. 345-361
Author(s):  
Henk Jager
Keyword(s):  
Exchange Rate ◽  
Developed Countries ◽  
Adjustment Process ◽  
Less Developed Countries ◽  
The Exchange Rate

scholarly journals Coping with the Exceptional Economic Problems in Turkey: A Field Survey on SMES

2019 ◽  
Vol 12 (2) ◽  
pp. 109-126 ◽  
Author(s):  
Ercan Özen
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Developed Countries ◽  
Business Owners ◽  
Important Place ◽  
Exchange Rate Fluctuations ◽  
The Exchange Rate ◽  
The Impact

Abstract Developing countries need higher economic growth to reach the level of developed countries. When developing countries exceed the potential economic growth, problems, such as, high external debt and high current deficit emerge. Such situations increase the financial risk of the country; in addition, international political risks, fluctuations in capital inflows and some manipulative movements have subjected countries to extreme exchange rate fluctuations. Purposes of this research: (1) to uncover the impact of high exchange rate volatility on small business activities and (2) to determine whether the level of exposure of the exchange rate shock on business owners varies by age. The methodology of the study involved a survey administered to 390 small and medium-sized enterprises (SMEs). The findings of the study show that after a period of significant exchange rate fluctuations, business activities were negatively affected, sales decreased, and job cuts increased. On the other hand, the exchange rate effect was mostly felt by all business owners of different ages. According to the study, it can be concluded that small enterprises are vulnerable to rising exchange rate volatility. The effect on SMEs with more work experience is not different. In order to alleviate the effects of adverse exchange rate movements, enterprises should be more cautious in their activities. Two suggestions can be made at this point: (i) Governments should follow optimal growth policies and (ii) Small businesses that have an important place in the economy should be made aware of the exchange rate risk and crisis management.

scholarly journals Do Exchange Rate Changes have Symmetric or Asymmetric Effects on the Demand for Money in Korea?

2017 ◽  
Vol 9 (2) ◽  
pp. 155-168
Author(s):  
Mohsen Bahmani-Oskooee ◽  
Jungho Baek
Keyword(s):  
Exchange Rate ◽  
Wealth Effects ◽  
Adjustment Process ◽  
Negative Effects ◽  
Demand For Money ◽  
Asymmetric Effects ◽  
Nonlinear Ardl ◽  
Long Run ◽  
The Exchange Rate ◽  
Exchange Rate Changes

Previous studies that included the exchange rate in the Korean demand for money assumed that the effects of the exchange rate changes are symmetric and adjustment process is linear. They found no significant effects. In this paper we apply Shin et al.’s (2014) Nonlinear ARDL approach to cointegration and error-correction modeling and test the symmetric versus asymmetric effects of exchange rate changes on the demand for money in Korea. Using quarterly data over the period 1973-2014, the results show that indeed the effects are asymmetric in the short run. In the long run, however, although the effects are symmetric but both won depreciation and won appreciation have significantly negative effects on the demand for money, supporting the wealth effects argument.

scholarly journals Volatility Spillover USD-IDR Exchange Rate With Indonesia Stock Price

TRIKONOMIKA ◽  
2017 ◽  
Vol 16 (1) ◽  
pp. 1
Author(s):  
Naupal Irfan Firdaus ◽  
Andrieta Shintia Dewi ◽  
Aldilla Iradianty
Keyword(s):  
Exchange Rate ◽  
Granger Causality ◽  
Stock Price ◽  
Time Series Data ◽  
Developed Countries ◽  
Series Data ◽  
Volatility Spillover ◽  
Exchange Market ◽  
Current Time ◽  
The Exchange Rate

Value of imports higher than exports, causing the trade deficit, the appreciation of the currency in the developed countries, and withdrawals by foreign investors on the Indonesian stock exchange market. These things cause the movement of the exchange rate USD-IDR and Indonesian Stock Price are volatile and tend to weaken in the period from January 3, 2011 - August 31, 2016. This study to determine spillover volatility of the exchange rate USD-IDR with Indonesian Stock Price. By using current time series data, analyzed by Augmented Dickey-Fuller (ADF), GARCH, and Granger Causality. The results of the data processing rate of USD-IDR and data Indonesian Stock Price stationary at first difference by changing the level of daily data into a return of the respective data. Data having problems heteroskedasticity so it can be analyzed using GARCH. Results of the analysis showed that there is a volatility spillover between the two data. Then granger causality test results show that the causality occurs in both directions, meaning that changes in the foreign exchange market to give effect to the capital markets, and vice versa. 

scholarly journals Inflation Targeting and Exchange Rate Management In Less Developed Countries

2016 ◽  
Vol 16 (55) ◽  
pp. 1 ◽  
Author(s):  
Marco Airaudo ◽  
Edward Buffie ◽  
Luis-Felipe Zanna ◽  
◽  
◽  
...  
Keyword(s):  
Exchange Rate ◽  
Inflation Targeting ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Exchange Rate Management

Commodity prices and exchange rates: evidence from commodity-dependent developed and emerging economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saba Haider ◽  
Mian Sajid Nazir ◽  
Alfredo Jiménez ◽  
Muhammad Ali Jibran Qamar
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Forecast Error ◽  
Commodity Prices ◽  
Developed Countries ◽  
Emerging Countries ◽  
Superior Performance ◽  
Content Type ◽  
Commodity Export ◽  
The Exchange Rate

PurposeIn this paper the authors examine evidence on exchange rate predictability through commodity prices for a set of countries categorized as commodity import- and export-dependent developed and emerging countries.Design/methodology/approachThe authors perform in-sample and out-of-sample forecasting analysis. The commodity prices are modeled to predict the exchange rate and to analyze whether this commodity price model can perform better than the random walk model (RWM) or not. These two models are compared and evaluated in terms of exchange rate forecasting abilities based on mean squared forecast error and Theil inequality coefficient.FindingsThe authors find that primary commodity prices better predict exchange rates in almost two-thirds of export-dependent developed countries. In contrast, the RWM shows superior performance in the majority of export-dependent emerging, import-dependent emerging and developed countries.Originality/valuePrevious studies examined the exchange rate of commodity export-dependent developed countries mainly. This study examines both developed and emerging countries and finds for which one the changes in prices of export commodities (in case of commodity export-dependent country) or prices of major importing commodities (in case of import-dependent countries) can significantly predict the exchange rate.

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