An Evidence Analysis Of The Exchange Rate Disconnect Puzzle In Indonesia

Salim, Agus; Abasimi, Ignatius; Vorlak, Long

doi:10.29226/tr1001.2018.33

Cited by 2 publications

(2 citation statements)

References 13 publications

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“…The estimation output suggested further that, the fixed exchange rate will at some point in time limits the general welfare of the Nigerian economic enhancement because the real exchange rate reflects the opposite correlation of economic progress throughout the age of the fixed exchange rate system. Agus, Ignatius, and Long (2018) An Evidence Analysis of the Exchange Rate Disconnect Puzzle in Indonesia. The study established a connection between exchange rate and macroeconomic fundamentals.…”

Section: Empirical Reviewmentioning

confidence: 99%

The Impacts of Exchange Rate on Economic Growth in Cambodia

Vorlak

Abasimi

Yang

2019

International Journal of Applied Economics, Finance and Account

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This research paper assesses the impact of exchange rates on the economic growth of Cambodia's. The study used variables such as gross domestic product (GDP) indicating Cambodia's economic growth, as well as some explanatory variables such as exchange rate (EXR), broad money (M2), and openness to trade (TOP), rate of inflation (IFR) and foreign direct investment (FDI). The study used an ordinary least squares (OLS) regression model to estimate the effects of exchange rates on Cambodia's economic growth. The research data was downloaded from the World Bank database. According to estimates, the results show that the impact of exchange rate (EXR) and openness to trade (TOP) on GDP is 1%. Exchange rate is positively correlated with GDP, while trade openness is negatively correlated with GDP. During the period of study (1995-2017), other variables such as broad money (M2), inflation rate (IFR), and foreign direct investment (FDI) possess not significant effect on Cambodia's GDP.

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Section: Empirical Reviewmentioning

confidence: 99%

The Impacts of Exchange Rate on Economic Growth in Cambodia

Vorlak

Abasimi

Yang

2019

International Journal of Applied Economics, Finance and Account

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“…If there is unutilized capacity, a nominal devaluation leads in higher output, according to classical theory. As a result, devaluation raises the relative prices of tradables and non-tradables, encouraging expenditure switching (Nguyen, 2014;Moller and Walker, 2015;Agus and Long, 2018).…”

Section: Rationale Of the Studymentioning

confidence: 99%

Impact of Exchange Rate Devaluation in Ethiopia and Forecasting Foreign Exchange Rate Using ARIMA Model

2021

EJBM

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The exchange rate is an important indicator of economic activity that policymakers use to formulate policies. This paper is based on fitting historical nominal exchange rate time series expressed in terms of past values of itself plus current and lagged values of error term using the Autoregressive Integrated Moving Average (ARIMA) model over the period 1971-2020, resulting in the model (2,1,1) to forecast the next 15 years. The projection's performance is assessed using data from the preceding fifty years sourced from World Bank, and the forecast indicates that domestic currency depreciation will become more prevalent in order to stimulate exports. Moreover, the ARDL model is used to examine the impact of exchange rate, import, export, and inflation rate on RGDP from 1977 to 2018. The unit root test (Augmented Dickey-Fuller test) was used to verify the integration order of the variables. The five variables are used in the cointegration analysis. The bounds test of cointegration was used in this work. The results showed that the F-statistics value is greater than the upper boundaries at all levels of significance, indicating that individual variables have a long-term relationship with RGDP. This led to the estimation of the Error Correction Model (ECM), in which 25.1 percent of the disequilibrium is adjusted annually to bring the system back into equilibrium. Furthermore, nominal exchange rate and import has positive contribution to RGDP while inflation has adverse effect on RGDP in the long-run. Besides, inflation has a negative impact to RGDP in the short run due to its lag period effects.

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An Evidence Analysis Of The Exchange Rate Disconnect Puzzle In Indonesia

Cited by 2 publications

References 13 publications

The Impacts of Exchange Rate on Economic Growth in Cambodia

The Impacts of Exchange Rate on Economic Growth in Cambodia

Impact of Exchange Rate Devaluation in Ethiopia and Forecasting Foreign Exchange Rate Using ARIMA Model

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