Estimating the impact of exchange-rate uncertainty on unemployment in developing Asian countries

2007 ◽  
Author(s):  
Shu-Chen Chang ◽  
Chung-Te Ting ◽  
Chung-Hua Shen
Keyword(s):  
Exchange Rate ◽  
Asian Countries ◽  
Exchange Rate Uncertainty ◽  
The Impact

Exchange rate uncertainty and the level of investment in selected South-east Asian countries

2004 ◽  
Vol 36 (19) ◽  
pp. 2161-2165 ◽  
Author(s):  
Gyan Pradhan ◽  
Zeljan Schuster ◽  
Kamal P. Upadhyaya *
Keyword(s):  
Exchange Rate ◽  
East Asian ◽  
Asian Countries ◽  
Exchange Rate Uncertainty

scholarly journals Exchange Rate Regime and Economic Growth in Asia: Convergence or Divergence

2020 ◽  
Vol 13 (1) ◽  
pp. 9
Author(s):  
Dao Thi-Thieu Ha ◽  
Nga Thi Hoang
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Exchange Rate Regime ◽  
Generalized Method Of Moments ◽  
Asian Countries ◽  
Quantitative Evidence ◽  
The Exchange Rate ◽  
Changing Economy ◽  
The Impact ◽  
Unbalanced Panel Data

Exchange rates and exchange rate regimes in a constantly changing economy have always attracted much attention from scholars. However, there has not been a consensus on the effect of exchange rate on economic growth. To determine the direction and magnitude of the impact of an exchange rate regime on economic growth, this study uses the exchange rate database constructed by Reinhart and Rogoff. This study also employs the GMM (Generalized Method of Moments) technique on unbalanced panel data to analyze the effect of the exchange rate regime on economic growth in Asian countries from 1994 to 2016. Empirical results suggest that a fixed exchange rate regime (weak flexibility) will affect economic growth in the same direction. As such, results from the study will serve as quantitative evidence for countries in the Asian region to consider when selecting a suitable policy and an exchange rate regime to attain high economic growth.

scholarly journals Investment and exchange rate uncertainty under different regimes

2014 ◽  
Vol 44 (3) ◽  
pp. 553-577
Author(s):  
Cristiano Aguiar de Oliveira
Keyword(s):  
Exchange Rate ◽  
Real Option ◽  
Investment Decision ◽  
Exchange Rate Regimes ◽  
Significant Loss ◽  
Project Investment ◽  
Foreign Markets ◽  
Exchange Rate Uncertainty ◽  
Regime Stability ◽  
The Impact

This paper examines the impact of the exchange rate uncertainty on investment under different exchange rate regimes. The paper presents a theoretical model where exchange rate is a stochastic process and investment decision behaves as a Real Option. The paper evaluates the performance of a new project investment under free float, fixed and intermediate exchange rate regimes (managed float and crawling peg). The comparison among the different regimes shows that the crawling peg has advantages when compared to other regimes. The regime stability implies that less currency devaluations are necessary to stimulate investment, especially when there is a significant loss of market power in foreign markets.

The Impact of Exchange Rate Uncertainty on the Level of Investment

1999 ◽  
Vol 109 (454) ◽  
pp. 55-67 ◽  
Author(s):  
Julia Darby ◽  
Andrew Hughes Hallett ◽  
Jonathan Ireland ◽  
Laura Piscitelli
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Uncertainty ◽  
The Impact

scholarly journals Effect of exchange rate uncertainty on bilateral trade performance in SAARC countries: a gravity model analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Banna Banik ◽  
Chandan Kumar Roy
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
Gravity Model ◽  
Bilateral Trade ◽  
Exchange Rate Volatility ◽  
Exchange Rate Uncertainty ◽  
Content Type ◽  
Estimation Techniques ◽  
Trade Performance ◽  
The Impact

PurposeExchange rate uncertainty leads to an indecisive environment for imports and exports that would condense international trade, foreign direct investment, trade earnings, trade volumes, economic growth and welfare. This study aims to examine, empirically, the effect of exchange rate uncertainty on bilateral trade performance, focusing on eight SAARC member economies using the popular modified gravity model of trade.Design/methodology/approachThe paper includes eight SAARC members – Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka panel data set over the period 2005–2018. The authors consider both standardized value (standard deviation) and conditional variance model to determine volatility of exchange rate. Primarily, ordinary least squares, random effects and fixed effects estimation techniques are employed to investigate the impact of exchange rate volatility. Endogeneity and robustness of the findings have been tested using the simultaneity-adjusted model and dynamic panel data two-step system GMM estimation techniques.FindingsEmpirical findings endorse the view that exchange rate volatility lowers trade flows in the SAARC regions. However, this adverse effect of exchange rate uncertainty on trade is pretty small. The negative correlation between exchange rate volatility and bilateral trade remains consistent and significant after controlling of simultaneous causality, autocorrelation, year effects, country-pair heterogeneity and endogeneity irrespective of panel data estimation techniques and different measures of volatility.Originality/valueThe present paper is original work.

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