The impacts of productivity differentials and oil price on the real exchange rate misalignment: evidence from a developing country

2019 ◽  
Vol 12 (4) ◽  
pp. 582
Author(s):  
Mouyad Alsamara
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Developing Country ◽  
Oil Price ◽  
The Real ◽  
Exchange Rate Misalignment ◽  
Productivity Differentials

The Effects of Domestic Policies and External Factors on the Real Exchange Rate and Economic Performance in Sub-Saharan Africa

1996 ◽  
Vol 40 (1) ◽  
pp. 92-103
Author(s):  
Jonathan Ikoba ◽  
Akorlie A. Nyatepe-Coo ◽  
Oluwole Owoye
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
External Factors ◽  
Sub Saharan Africa ◽  
Budget Balance ◽  
African Countries ◽  
The Real ◽  
Exchange Rate Misalignment ◽  
Sub Saharan ◽  
Exchange Rate Changes

This paper examines the relative contributions of domestic and external factors to real exchange rate changes in six sub-Sahara African countries during the period 1960–91. A vector autoregression (VAR) model is used to analyze the interrelationships between the current account, the budget balance and the real exchange rate. The results suggest that external factors such as the terms of trade and foreign income were as important as domestic policy mistakes in causing real exchange rate misalignment in sub-Saharan Africa.

scholarly journals Oil volatility pass through and real exchange misalignment in leading commodity exporting countries

2020 ◽  
Vol 71 (6) ◽  
pp. 579-606
Author(s):  
Nicola Rubino
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Goodness Of Fit ◽  
Real Exchange Rates ◽  
Commodity Prices ◽  
Price Volatility ◽  
Oil Price ◽  
Price Variation ◽  
The Real ◽  
Speed Of Adjustment

Past research has shown how real Exchange rates follow a univariate nonlinear process that approximates their behavior in terms of transaction costs. However, little or nothing has been said about alternative sources of nonlinearity in commodity exporting countries. Our paper investigates the missing link between the Real Exchange Rate Commodity Prices equilibrium by employing an oil price volatility measure as an external source of short-term fluctuations. Our estimates show that the Real Exchange Rate Commodity price relationship appears to be nonlinear with respect to oil price variation, and that the goodness of fit of the nonlinear specifications appears to outperform that of the equivalent linear models. The equilibrium speed of adjustment appears to be different in the two branches of the relationship: in the majority of the threshold models, the negative volatility regime presents a faster speed of adjustment and in some cases a most significant one.

scholarly journals Real Exchange Rate Misalignment in Jordan: The Permanent Equilibrium Approach

2017 ◽  
Vol 9 (3) ◽  
pp. 29
Author(s):  
Noura Abu Asab
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Rate System ◽  
The Real ◽  
Economic Fundamentals ◽  
Long Run ◽  
The Us ◽  
Exchange Rate Misalignment ◽  
Exchange Rate System

This study attempts to measure the real exchange rate misalignment in Jordan from 1980 to 2014. We examine the role of adopting the pegged exchange rate system to the US in 1995 in limiting/increasing misalignment. Applying the Johansen approach, a cointegrating relationship is found between the real exchange rate and a number of economic fundamentals that influence the long-run real exchange rate. Over a long examined period of exchange rate fixity, the real exchange rate is kept depreciated except after 2006-2008 over which the appreciation of the real exchange rate is noted. However, after 2011 misalignment receded as the real exchange rate matched the equilibrium real exchange rate. An attempt is also made to model the nexus between the growth of per capita income and misalignment. The exchange rate misalignment is found to significantly decrease the economic growth. 

scholarly journals Real exchange rate misalignment and economic performance in Namibia

2013 ◽  
Vol 10 (3) ◽  
pp. 440-455
Author(s):  
Joel Hinaunye Eita ◽  
Andre C. Jordaan
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Economic Performance ◽  
Negative Impact ◽  
Exchange Rate Policy ◽  
Promotion Strategy ◽  
The Real ◽  
Exchange Rate Misalignment ◽  
And Performance ◽  
Trade Promotion

This paper estimates the real exchange rate misalignment and investigates its impact on economic performance and competitiveness of Namibia for the period 1970 to 2011 using cointegrated vector autoregression methods. The results show that there were periods of overvaluation and undervaluation of the real exchange rate. The analysis reveals that misalignment has a negative impact on the competitiveness and performance of the economy. Maintaining the real exchange rate out of equilibrium reduces economic performance and competitiveness. This suggests that policy makers should monitor the real exchange rate regularly and make the exchange rate policy part of trade promotion strategy

scholarly journals Oil Price And Real Exchange Rate: The Case Of India

2014 ◽  
Vol 13 (4) ◽  
pp. 809 ◽  
Author(s):  
Neetu Kaushik ◽  
Raja Nag ◽  
Kamal P. Upadhyaya
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Interest Rates ◽  
Real Exchange Rate ◽  
Price Change ◽  
Oil Price ◽  
Series Data ◽  
The Real ◽  
Indian Rupee ◽  
The U.S

This paper studies the effect of oil price change on the real exchange rate between the Indian rupee and the U.S. dollar. For that, a model is developed which is based on a monetary model of exchange rate which incorporates the real GDP, real money balances, and the interest rates of both the home and foreign country and the real price of the crude oil. Quarterly time series data from 1996 to 2012 is used. Before estimating the model, the time series properties of the data are diagnosed in order to ensure the stationarity of the data. The data series are found to be integrated of order one and the null hypothesis of no cointegration is rejected. Therefore an error correction model is developed and estimated. The estimated results suggest that there is no detectable effect of oil price change on the real exchange rate between the Indian rupee and the U.S. dollar.

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