Causal Relationship Between Real Exchange Rate and Economic Growth in Asia – Pacific Region

Abstract

The main purpose of this study is to examine the causal relationship between Real Exchange Rate and Economic Growth Variables in the Asia – Pacific region. Granger Causality Test was employed, to examine the causal relationship between the dependent and independent variables, with the sample economies, over the period from 2006 to 2017, under quarterly frequency. The researcher did not find any signs of causal relationship between the variables, in majority of the sample countries.

Keywords: Real Exchange Rate, Imports, Exports, and Foreign Exchange Reserves

JEL Classification: G15, F21, and F31