The effect of nominal exchange rate volatility on real macroeconomic performance in the CEE countries

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

doi:10.1016/j.ecosys.2010.05.003

Cited by 48 publications

(14 citation statements)

References 58 publications

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“…The results unambiguously suggest that countries in a monetary union have a greater volume of trade and less volatility in the real exchange rate than countries using their own domestic currency. Arratibel, Furceri, Martin, and Zdzienicka (2011) analysed both the EU and the CEE countries. Using panel estimations for the period between 1995 and 2008, they found that lower exchange rate volatility is associated with greater economic growth and a larger current account deficit.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of the exchange rate on the foreign trade imbalance during the economic crisis in the new EU member states and the Western Balkan countries

Rajković

Bjelić

Jaćimović

et al. 2020

Economic Research-Ekonomska Istraživanja

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This paper examines the relationship between the real exchange rate and the foreign trade imbalance in both the Western Balkan (WB) and Central and Eastern European (CEE) countries. During the most recent global economic crisis, examining the impact of the exchange rate on the balance of trade took on a particular importance. Countries used a variety of monetary policy regimes and, depending on their choice, they had different economic instruments available to deal with the crisis. The aim of the research was whether exchange rate devaluation and/or depreciation are capable of effectively and fully eliminating the negative effects of the global economic crisis, as well as the consequent poor export performance and contracted economic activity. Our findings show that during an economic crisis those countries that use their own currency cannot substantially adjust their trade deficit by depreciating their currency. Moreover, it is suggested that during the global economic crisis, the balance of payments deficit is not impacted significantly by the exchange rate, any more. In such cases, other factors play a more significant role, like as government spending, followed by foreign demand and direct investments.

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Section: Literature Reviewmentioning

confidence: 99%

The impact of the exchange rate on the foreign trade imbalance during the economic crisis in the new EU member states and the Western Balkan countries

Rajković

Bjelić

Jaćimović

et al. 2020

Economic Research-Ekonomska Istraživanja

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show abstract

“…While (Arratibel and Zdzienicka, 2011) documented 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. As (Cushman, 1988) documented that there is a positive association between exchange rate uncertainty and FDI in the United States.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Exchange Rate on Foreign Direct Investment in Pakistan

Bilawal¹,

Ibrahim²,

Abbas³

et al. 2014

aeb

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Exchange rates have main role that affect the macroeconomics performance of any leading country. The objective of this research was to investigate whether uncertainty or fluctuations in exchange rate affects the macroeconomic in Pakistan. This Study was based on secondary and time series data. For this purpose 32 years old data of Exchange rate and FDI for the period of 1982 to 2013 was used and was collected from the website of State Bank of Pakistan. The tests of Correlation and regression analysis were applied through SPSS software to check the relationship between Exchange rate and FDI. The correlation results showed that there is positive significant relationship between Exchange rate and Foreign Direct Investment while in regression analysis the value of R-square = 0.679 which shows that the independent variable Exchange has 67% impact on dependent variable Foreign Direct Investment and research model is accurate. This research will help the mangers, related organization and future researchers to make or revise the further economic decisions.

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“…The price of a country's currency, seen as a commodity, is essentially determined by the relationship between supply and demand in the forex market. The fluctuations of the exchange rate exercise great influence on macroeconomic operation [1] and the implementation of monetary policy [2,3]. From the micro perspective, both enterprises and individuals are more likely to succumb to the risks under a floating exchange rate regime than under a fixed regime since production and consumption behaviors tend to change accordingly when dealing with uncertainty [4].…”

Section: Literature Reviewmentioning

confidence: 99%

Is Foreign Exchange Intervention a Panacea in Diversified Circumstances? The Perspectives of Asymmetric Effects

Wang

Le²,

Park

2020

Sustainability

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Owing to the country’s heavy reliance on exports, the role of foreign exchange intervention in South Korea’s economic development is self-evident. The effectiveness of the intervention is what we are concerned with in this paper. Recently, a growing body of literature has engaged in exploring the asymmetric effects of foreign exchange intervention both theoretically and empirically. Against this background, we employ a threshold vector autoregression (TVAR) model in parallel with its generalized impulse response functions (GIRFs) to show that there are asymmetric effects of the Bank of Korea (BOK)-led interventions regardless of the volatility regimes.

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The effect of nominal exchange rate volatility on real macroeconomic performance in the CEE countries

Cited by 48 publications

References 58 publications

The impact of the exchange rate on the foreign trade imbalance during the economic crisis in the new EU member states and the Western Balkan countries

The impact of the exchange rate on the foreign trade imbalance during the economic crisis in the new EU member states and the Western Balkan countries

Impact of Exchange Rate on Foreign Direct Investment in Pakistan

Is Foreign Exchange Intervention a Panacea in Diversified Circumstances? The Perspectives of Asymmetric Effects

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