Macroeconomic Impact on the Exchange Rate of SAARC Countries
Sharif, S. H. (2017). Macroeconomic impact on the exchange rate of SAARC countries. International Journal of Applied, 5(1).
9 Pages Posted: 26 Feb 2020
Date Written: February 21, 2017
This paper is prepared with an intention to examine the impact of major macroeconomic variables which includes real interest rate, inflation rate, unemployment rate, GDP per capita, foreign direct investment inflows, export and import over the exchange rate of the countries who are the member of SAARC. To investigate extensively this research paper considers the economic data from 1971-2015 for the selected 5 members of SAARC which includes Bangladesh, India, Pakistan, Sri Lanka and Nepal. The findings from the OLS regression model indicates interest rate, inflation rate and unemployment rate is negatively and significantly related with exchange rate while GDP per capita and foreign direct investment net inflows have positive significant relationship with exchange rate. The results of this paper approve the null hypothesis for export and import which exhibits that import and export has no significant relationship with exchange rate.
Keywords: Macroeconomic Impact, OLS Regression Model, SAARC, Interest Rate, Inflation Rate, Unemployment Rate, GDP per Capita and Foreign Direct Investment Net Inflows, Export, Import
JEL Classification: C12, C23, C82, C87, E22, E24, E31, E43, F31, F62
Suggested Citation: Suggested Citation