scholarly journals The IMPACT OF CORRUPTION ON EXCHANGE RATE: EMPIRICAL EVIDENCE FROM PANEL DATA

2019 ◽  
Vol 6 (1) ◽  
pp. 34
Author(s):  
Jan Muhammad Sohu ◽  
Ikramuddin Junejo ◽  
Farhan Hussain
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
Real Exchange Rate ◽  
Positive Impact ◽  
Unit Root Test ◽  
Economic Cost ◽  
Analysis Data ◽  
Developed Countries ◽  
Economic Indicators ◽  
The Impact

Purpose- This study examines the economic cost of exchange rate. Pakistan has been facing serious issue in regard of exchange rate and this fluctuations impact on various economic indicators or variables. The overall exchange rate value is being depreciated since 2008, it started from Rs 60 against one dollar and recently it reached to Rs, 134 that are equal to one dollar.  Design/methodology/approach- Time series panel data from 2002-2016 has been used for analysis, it has two cross-sections Pakistan and India. Data is collected from various sources that include Asian Development Bank, Transparency International US and World Economic Indicators. Exchange rate in Pak rupees and Ind rupees, corruption perception index in percentage and foreign borrowings in both Pak rupees and Ind rupees’ variables are taken for analysis. Data will be analyzed through statistical techniques which comprises panel unit root test and panel regression analysis in E-views version 7. Findings- Based on predictable results, all studied variables are found to have significant and positive impact on real exchange rate. Originality/value- In previous studies research scholars investigated overall exchange rate impact on GDP of any economy. This study gives insight into real exchange rate impact on government department corruption of both countries Pakistan and India. This study can be extended to other less developed countries which are also facing problem of exchange rate in their respective countries.

scholarly journals Real exchange rate undervaluation and sectoral growth in South Africa

2018 ◽  
Vol 9 (4) ◽  
pp. 462-476
Author(s):  
Brian Tavonga Mazorodze ◽  
Dev D. Tewari
Keyword(s):  
South Africa ◽  
Exchange Rate ◽  
Panel Data ◽  
Real Exchange Rate ◽  
Positive Impact ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Content Type ◽  
Sectoral Growth ◽  
The Impact

PurposeThe purpose of this paper is to establish the empirical link between real exchange rate (RER) undervaluation and sectoral growth in South Africa between 1984 and 2014.Design/methodology/approachThe study employs a dynamic panel data approach estimated by the system generalised method of moments technique in a bid to control for endogeneity.FindingsThe authors find a significant positive impact of undervaluation on sectoral growth which increases with capital accumulation. Also, the authors confirm that undervaluation promotes sectoral growth up to a point where further increases in undervaluation retards growth.Practical implicationsThe results confirm the importance of policies that keep the domestic currency weaker to foster sectoral growth.Originality/valueThe originality of this paper lies in establishing the impact of exchange rate undervaluation on growth at a sector level in the context of South Africa using a dynamic panel data approach.

scholarly journals The Measuring Economic Cost of Exchange Rate: Empirical Evidence from Panel Data

2019 ◽  
Vol 6 (2) ◽  
pp. 1-3
Author(s):  
Ikram Uddin ◽  
Abdul Subhan Kazi ◽  
Qamaruddin Mahar ◽  
Farhan Hussain
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
Cross Sections ◽  
Positive Impact ◽  
Statistical Tests ◽  
Economic Cost ◽  
Economic Indicators ◽  
Transparency International ◽  
World Economic ◽  
Approach Time

Purpose- This study examines the economic cost of exchange rate. Pakistan has been facing serious issue in regard of exchange rate and this fluctuations impact on various economic indicators or variables. The overall exchange rate value is being depreciated since 2008, it started from Rs 60 against one dollar and recently it reached to Rs, 154 that is equal to one dollar.  Design/methodology/approach- Time series panel data from 2002-2016 has been used for analysis, it has two cross-sections Pakistan and India. Data is collected from various sources that include Asian Development Bank, Transparency International US and World Economic Indicators. Exchange rate in Pak rupees and Ind rupees, corruption perception index in percentage and foreign borrowings in both Pak rupees and Ind rupees’ variables are taken for analysis. Various statistical tests have been applied for the analysis of data such as unit root panel and regression analysis panel in E-views version 7. Findings- Based on all studied variables are found to have significant and positive impact on real exchange rate. Originality/value- In previous studies research scholars investigated overall exchange rate impact on GDP of any economy. This study gives insight into exchange rate impact on government department corruption of both countries Pakistan and India. In future similar study can be conducted for those countries which are also facing problem of exchange rate in their respective countries.      

The Impact of FDI Inflows and Outflows on Economic Growth: An Empirical Study of some Developed and Developing Countries

2019 ◽  
Vol 6 (1) ◽  
pp. 129-157
Author(s):  
Younis Ali Ahmed ◽  
Roshna Ramzi Ibrahim
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Fixed Effects ◽  
Positive Impact ◽  
Developed Countries ◽  
Fdi Inflows ◽  
Panel Data Estimation ◽  
The Impact ◽  
Data Estimation

FDI is an investment including a long-term relationship and reflecting a lasting interest and control of a resident entity in one economy. FDI is a combination of capital, technology, marketing and management. Based on the Neoclassical, Exogenous and modern theories FDI has a positive role in accelerating economic growth and development. Many countries are improving their economy in order to attract FDI.  The main objective of this study is to examine the impact of FDI inflows and outflows on economic growth of developed countries such as (USA, UK and France) and developing countries such as (Malaysia, Turkey and Iran) from (1980 to 2017). To accomplish that, ARDL approach and panel data estimation were used. The empirical findings reveal that the FDI inflows and outflows for developed countries (US and UK) have a positive impact on economic growth (GDP), while the FDI inflows of France have a negative impact. Nevertheless, FDI inflows and outflows for developing countries of (Malaysia, Turkey, and Iran) have a positive impact on economic growth. The result of panel data estimation shows that Fixed effects model is appropriate for estimating the parameters. In conclusion, Developing countries should diversify their FDI inflows and outflows to cover all the sectors and they should benefit from the developed countries’ experiences with higher impact of FDI on economic growth.

scholarly journals EXPLORING IMPACT OF MACRO ECONOMIC VARIABLES ON GDP OF PAKISTAN

2013 ◽  
Vol 9 (1) ◽  
Author(s):  
Sidrat Jilani ◽  
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Real Exchange Rate ◽  
Goodness Of Fit ◽  
Econometric Model ◽  
Negative Impact ◽  
Positive Impact ◽  
Research Work ◽  
Secondary Data ◽  
The Impact

Purpose-This research work explores the impact of macroeconomic variables like inflation, real exchange rate and interest rate on GDP of Pakistan in the light of 32 years data, for the period of 1980 to2013. Methodology/sample-Research was secondary data based, and multivariate regression analysis was used to analyze the data. Econometric model used for analysis consisted of GDP as dependent variable while the independent variables were interest rate, exchange rate and inflation rate. Data was taken for these variables from the website of State Bank of Pakistan and World Bank. Individual significance of the variables, overall significance and goodness of fit of the econometric model was analysed. Findings-The study found that there is significant impact of inflation, interest rate and exchange rate on GDP. As far as the signs of co-efficient are concerned, inflation and interest rate had negative relation with GDP while interest rate possessed positive relation with GDP. Practical implications-Based on results and its analysis it is recommended that Government adopted tight monetary policy to reduce inflation as the results indicate that inflation has significant but negative impact on GDP. In case of developing counties like Pakistan high value of real exchange rate should be maintained because results show that there is significant and positive impact of exchange rate with GDP. Ceiling of interest rate should be removed in order to boost the economy.

scholarly journals EXPLORING IMPACT OF MACRO ECONOMIC VARIABLES ON GDP OF PAKISTAN

2014 ◽  
Vol 9 (1) ◽  
Author(s):  
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Real Exchange Rate ◽  
Goodness Of Fit ◽  
Econometric Model ◽  
Negative Impact ◽  
Positive Impact ◽  
Research Work ◽  
Secondary Data ◽  
The Impact

Purpose-This research work explores the impact of macroeconomic variables like inflation, real exchange rate and interest rate on GDP of Pakistan in the light of 32 years data, for the period of 1980 to2013. Methodology/sample-Research was secondary data based, and multivariate regression analysis was used to analyze the data. Econometric model used for analysis consisted of GDP as dependent variable while the independent variables were interest rate, exchange rate and inflation rate. Data was taken for these variables from the website of State Bank of Pakistan and World Bank. Individual significance of the variables, overall significance and goodness of fit of the econometric model was analysed. Findings-The study found that there is significant impact of inflation, interest rate and exchange rate on GDP. As far as the signs of co-efficient are concerned, inflation and interest rate had negative relation with GDP while interest rate possessed positive relation with GDP. Practical implications-Based on results and its analysis it is recommended that Government adopted tight monetary policy to reduce inflation as the results indicate that inflation has significant but negative impact on GDP. In case of developing counties like Pakistan high value of real exchange rate should be maintained because results show that there is significant and positive impact of exchange rate with GDP. Ceiling of interest rate should be removed in order to boost the economy.

scholarly journals EXPLORING IMPACT OF MACRO ECONOMIC VARIABLES ON GDP OF PAKISTAN

2010 ◽  
Vol 6 (2) ◽  
Author(s):  
Sidrat Jilani ◽  
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Real Exchange Rate ◽  
Goodness Of Fit ◽  
Econometric Model ◽  
Negative Impact ◽  
Positive Impact ◽  
Research Work ◽  
Secondary Data ◽  
The Impact

Purpose-This research work explores the impact of macroeconomic variables like inflation, real exchange rate and interest rate on GDP of Pakistan in the light of 32 years data, for the period of 1980 to2013. Methodology/sample-Research was secondary data based, and multivariate regression analysis was used to analyze the data. Econometric model used for analysis consisted of GDP as dependent variable while the independent variables were interest rate, exchange rate and inflation rate. Data was taken for these variables from the website of State Bank of Pakistan and World Bank. Individual significance of the variables, overall significance and goodness of fit of the econometric model was analysed. Findings-The study found that there is significant impact of inflation, interest rate and exchange rate on GDP. As far as the signs of co-efficient are concerned, inflation and interest rate had negative relation with GDP while interest rate possessed positive relation with GDP. Practical implications-Based on results and its analysis it is recommended that Government adopted tight monetary policy to reduce inflation as the results indicate that inflation has significant but negative impact on GDP. In case of developing counties like Pakistan high value of real exchange rate should be maintained because results show that there is significant and positive impact of exchange rate with GDP. Ceiling of interest rate should be removed in order to boost the economy.

Impact of external currency exposures on macroeconomic policies

2020 ◽  
pp. 23-40
Author(s):  
I. V. Prilepskiy
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Positive Impact ◽  
Exchange Rate Regime ◽  
Macroeconomic Policies ◽  
Panel Regressions ◽  
Financial Account ◽  
Currency Exposure ◽  
Cross Country ◽  
The Impact

Based on cross-country panel regressions, the paper analyzes the impact of external currency exposures on monetary policy, exchange rate regime and capital controls. It is determined that positive net external position (which, e.g., is the case for Russia) is associated with a higher degree of monetary policy autonomy, i.e. the national key interest rate is less responsive to Fed/ECB policy and exchange rate fluctuations. Therefore, the risks of cross-country synchronization of financial cycles are reduced, while central banks are able to place a larger emphasis on their price stability mandates. Significant positive impact of net external currency exposure on exchange rate flexibility and financial account liberalization is only found in the context of static models. This is probably due to the two-way links between incentives for external assets/liabilities accumulation and these macroeconomic policy tools.

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