The Effect of Nominal Exchange Rate Volatility on Real Macroeconomic Performance in the CEE Countries

Arratibel, Olga; Furceri, Davide; Martin, Reiner; Zdzienicka, Aleksandra

doi:10.2139/ssrn.1553790

Cited by 13 publications

(16 citation statements)

References 81 publications

(21 reference statements)

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“…However, there are similar studies [4,17] whose empirical results negate the finding of this study. [4,17] found that there is existence of negative and significant relationship of the volatility of exchange rates on FDI.…”

Section: Multiple Regression Analysiscontrasting

confidence: 45%

“…[17] found that there is the existence of a strong negative and significant impact on the volatility of the real exchange rate on investment at the plant in Colombia. [4] found that there is the existence of the negative and significant relationship of the volatility of exchange rates on FDI in member countries of the EU to Central and Eastern Europe.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Impact of Exchange Rate Fluctuations on Foreign Direct Investment in Nigeria

Zakari¹

2017

JFA

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Abstract:This study seeks to find out the relationship between foreign exchange rate and foreign direct investment (FDI) and the impact of FDI on the gross domestic product (GDP) in Nigeria, this is important in view of the recent and past devaluation of Nigeria currency as well as the exchange rate changes over the years to be precised 26years coverage . This underscores the need to assess how foreign investors through FDI respond to changes in the exchange rate, and how this relationship affects GDP with a view to identifying gaps and provide policy recommendations and direction to the policy makers and the Nigeria government. To achieve this, data of FDI, exchange rate, and GDP were obtained from the Central Bank of Nigeria (CBN) website for the period under review and analyzed using regression and correlation analysis techniques. Findings from the analysis show that there is a strong positive relationship between FDI and exchange rate in Nigeria on one hand and there is a weak positive relationship between FDI and GDP on the other hand. The researcher also found that there was a significant inflow of FDI from 2005-2014 due to rise in exchange rate in the same period. The study concludes that exchange rate, FDI, and GDP are positively correlated. The study recommended that Government of Nigeria should fully liberalized exchange rate regime devoid of fixed multiple exchange rates so as to attract more FDI and contribute to GDP, this is because commercial viability of any FDI is based on exchange rate stability.

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Section: Multiple Regression Analysiscontrasting

confidence: 45%

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Exchange Rate Fluctuations on Foreign Direct Investment in Nigeria

Zakari¹

2017

JFA

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“…Levy-Yeyati a Sturzenegger (Levy-Yeyati a Sturzenegger, 2001) observed implications of exchange rate volatility on domestic price level, money supply, real interest rates and real output in 154 countries since 1974 till 1979. Arratibel, Furceri, Martin and Zdzienicka (Arratibel, Furceri, Martin and Zdzienicka, 2011) investigated relationships between exchange rates development and foreign direct investments, domestic loans and current account on the sample of 9 countries from the Central and Eastern Europe. Lee a Chinn (Lee a Chinn, 1998) analyzed implications of real exchange rate fluctuations on the current account development in 7 most developed industrial countries.…”

Section: Overview Of the Literaturementioning

confidence: 99%

Real Output and Prices Adjustments Under Different Exchange Rate Regimes

Mirdala

2013

SSRN Journal

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“…The studies that report significant relationship between current account and exchange rate includes: [8], [9], [10] & [11] etc. [8] focus their study in Euro countries.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Based on basic auto regression estimation, the results indicate that a more flexible exchange rate regime significantly enhances the rate of current account adjustment. [11] use standard computable general equilibrium (CGE) to analyse the economics of the country Sudan. They prove that devaluation of Sudan's currency has improved their country international competitiveness and balance of payments.…”

Section: Literature Reviewmentioning

confidence: 99%

The Dynamic of Current Account in Emerging East-Asian:Does Exchange Rate Matter?

Sek¹,

Chuah²

2011

IJTEF

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Abstract-The aim of this project is to study the dynamics of a country's current account with the change of currency exchange rate. This phenomenon becomes more significant when the 1997 financial crisis hits Southeast Asian countries like Malaysia, Indonesia, Singapore, Korea, Thailand and the Philippines. Collected data will be divided into two sub-periods, pre-and post-crisis. By method, the changes can be presented clearly and concretely. In addition, the method of Structural Vector Auto Regressive, SVAR model will use as methodology in this project. Three variables are selected to study for the changes, current account/GDP, CPI and Exchange rate. After the analyzed, we found that actually current account do not change much expected after the crisis. Countries have changed their country financial policy to reduce the impact of fluctuation of currency exchange rate that has long worried. Inflation targeted policy has been become the preferred and priority.

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The Effect of Nominal Exchange Rate Volatility on Real Macroeconomic Performance in the CEE Countries

Cited by 13 publications

References 81 publications

The Impact of Exchange Rate Fluctuations on Foreign Direct Investment in Nigeria

The Impact of Exchange Rate Fluctuations on Foreign Direct Investment in Nigeria

Real Output and Prices Adjustments Under Different Exchange Rate Regimes

The Dynamic of Current Account in Emerging East-Asian:Does Exchange Rate Matter?

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