Relationship between Real Exchange Rate and Economic Growth in Asia – Pacific Countries

ADALYA JOURNAL, Volume 8 (8), 2019

3 Pages Posted: 11 Sep 2020

See all articles by Amirdha Vasani Sankarkumar

Amirdha Vasani Sankarkumar

Bharathidasan University

Murugesan Selvam

Department of Commerce and Financial Studies, Bharathidasan University

Chinnadurai Kathiravan

Department of Commerce and Financial Studies, Bharathidasan University

Date Written: August 2019

Abstract

This study proposes to investigate the link between Real Exchange Rate and Economic Growth in ten Asia - Pacific countries and aims to study how Real Exchange Rate (RER) and Economic Growth (EG) were related to each other. This study decomposed the linear relationship between RER and Economic Growth Variables like FER, GDP, Exports and Imports. It was found that FER, GDP, Exports and Imports did have positive relationship with RER in all the ten sample countries. Real Exchange Rate caused exports in countries like Hong Kong and Thailand. But Japan, the only country, did not report long run relationship between RER and Economic Growth Variables.

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

JEL Classification: G15, F21 and F31

Suggested Citation

Sankarkumar, Amirdha Vasani and Selvam, Murugesan and Kathiravan, Chinnadurai, Relationship between Real Exchange Rate and Economic Growth in Asia – Pacific Countries (August 2019). ADALYA JOURNAL, Volume 8 (8), 2019, Available at SSRN: https://ssrn.com/abstract=3664161

Amirdha Vasani Sankarkumar (Contact Author)

Bharathidasan University ( email )

Tiruchirappalli
Tamil Nadu
India

Murugesan Selvam

Department of Commerce and Financial Studies, Bharathidasan University ( email )

Tiruchirappalli
Tamil Nadu
India

Chinnadurai Kathiravan

Department of Commerce and Financial Studies, Bharathidasan University ( email )

Tiruchirappalli
Tamil Nadu
India

HOME PAGE: http://https://scholar.google.com/citations?user=quifdY4AAAAJ&hl=en

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