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Article Dans Une Revue Journal of chinese economic and foreign trade studies Année : 2019

Macroeconomic fundamentals and exchange rates in South Asian economies : evidence from pooled and panel estimations

Résumé

Purpose - This study aims to examine the impact of macroeconomic fundamentals on exchange rates of selected South Asian economies during 1981-2013.Design/methodology/approach - The authors have used two econometric approaches to the data. For the pooled sample, estimated generalized least square (EGLS) and the two-stage least square method are applied. For the panel data, the authors have used the panel generalized method of moments and ordinary least squares (OLS) methods.Findings - The results suggest that macroeconomic factors have a significant impact on exchange rates. The robust findings highlight that improvements in domestic economic and political systems are crucial for a successful exchange rate policy.Originality/value - The existing literature on exchange rate fundamentals have either focused on exchange rates and international trade or investigated the relationship for the developed economies. Covering a period of more than three decades, and using both pooled and panel estimations, our study is unique in terms of its focus on the South Asian economies.
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Dates et versions

hal-02559707 , version 1 (30-04-2020)

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Muhammad Umar Draz, Fayyaz Ahmad, Bhumika Gupta, Waqas Amin. Macroeconomic fundamentals and exchange rates in South Asian economies : evidence from pooled and panel estimations. Journal of chinese economic and foreign trade studies, 2019, 12 (2), pp.104-119. ⟨10.1108/JCEFTS-01-2019-0007⟩. ⟨hal-02559707⟩
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