REAL EXCHANGE RATE AND ECONOMIC FUNDAMENTAL: EMPIRICAL STUDY OF ASEAN-5
This paper studies the effect of fundamental economic variables on real exchange rates in Asean-5. The fundamental economic variables are capital mobility, technological progress, terms of trade, opennes index and fiscal policy. The paper applies panel unit root test, panel cointegration test, and...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universitas Islam Indonesia
2011-09-01
|
| Series: | Economic Journal of Emerging Markets |
| Subjects: | |
| Online Access: | http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/6423 |
| _version_ | 1811269386279845888 |
|---|---|
| author | Didi Nuryadin |
| author_facet | Didi Nuryadin |
| author_sort | Didi Nuryadin |
| collection | DOAJ |
| description |
This paper studies the effect of fundamental economic variables on real exchange rates in Asean-5. The fundamental economic variables are capital mobility, technological progress, terms of trade, opennes index and fiscal policy. The paper applies panel unit root test, panel cointegration test, and Engle-Yoo three-step for short run and long run equilibrium. The result indicates that purchasing power parity holds in the short run. The estimation of equilibrium real exchange rate equation suggests that the direction of the coefficients is in accordance with the theory. It also finds that capital inflow negatively influences equilibrium real exchange rates, and that technological progress affects real exchange rate.
|
| first_indexed | 2024-04-12T21:41:08Z |
| format | Article |
| id | doaj.art-73d08a85287941d29253e1b591fa8666 |
| institution | Directory Open Access Journal |
| issn | 2086-3128 2502-180X |
| language | English |
| last_indexed | 2024-04-12T21:41:08Z |
| publishDate | 2011-09-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj.art-73d08a85287941d29253e1b591fa86662022-12-22T03:15:45ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2011-09-0113REAL EXCHANGE RATE AND ECONOMIC FUNDAMENTAL: EMPIRICAL STUDY OF ASEAN-5Didi Nuryadin0Economic Faculty of Universitas Pembangunan Nasional “Veteran†Yogyakarta, Indonesia This paper studies the effect of fundamental economic variables on real exchange rates in Asean-5. The fundamental economic variables are capital mobility, technological progress, terms of trade, opennes index and fiscal policy. The paper applies panel unit root test, panel cointegration test, and Engle-Yoo three-step for short run and long run equilibrium. The result indicates that purchasing power parity holds in the short run. The estimation of equilibrium real exchange rate equation suggests that the direction of the coefficients is in accordance with the theory. It also finds that capital inflow negatively influences equilibrium real exchange rates, and that technological progress affects real exchange rate. http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/6423Real exchange ratefundamental economicsASEANpanel cointegration |
| spellingShingle | Didi Nuryadin REAL EXCHANGE RATE AND ECONOMIC FUNDAMENTAL: EMPIRICAL STUDY OF ASEAN-5 Economic Journal of Emerging Markets Real exchange rate fundamental economics ASEAN panel cointegration |
| title | REAL EXCHANGE RATE AND ECONOMIC FUNDAMENTAL: EMPIRICAL STUDY OF ASEAN-5 |
| title_full | REAL EXCHANGE RATE AND ECONOMIC FUNDAMENTAL: EMPIRICAL STUDY OF ASEAN-5 |
| title_fullStr | REAL EXCHANGE RATE AND ECONOMIC FUNDAMENTAL: EMPIRICAL STUDY OF ASEAN-5 |
| title_full_unstemmed | REAL EXCHANGE RATE AND ECONOMIC FUNDAMENTAL: EMPIRICAL STUDY OF ASEAN-5 |
| title_short | REAL EXCHANGE RATE AND ECONOMIC FUNDAMENTAL: EMPIRICAL STUDY OF ASEAN-5 |
| title_sort | real exchange rate and economic fundamental empirical study of asean 5 |
| topic | Real exchange rate fundamental economics ASEAN panel cointegration |
| url | http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/6423 |
| work_keys_str_mv | AT didinuryadin realexchangerateandeconomicfundamentalempiricalstudyofasean5 |