Economic freedom, real exchange rates and economic growth in emerging markets and developing countries
This paper examines the contingency effects of economic freedom on the growth effect of the exchange rate in a panel of 83 emerging markets and developing countries over the period 1976-2010. Based on the generalized method of moments system estimators (SGMM) that control for the weakness and prolif...
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Management, Universiti Putra Malaysia
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/65355/1/%285%29%20IJEM%20%28S3%29%202017%20R2%20ECONOMIC%20FREEDOM%2C%20REAL%20EXCHANGE%20RATES%20AND%20ECONOMIC%20GROWTH%20IN%20EMERGING%20MARKETS%20AND%20DEVELOPING%20COUNTRIES.pdf |
| _version_ | 1825932927678021632 |
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| author | Mohd Ali, Ly Slesman @ Sulaiman Niaz Ahmad, Mohd Naseem Aldomi, Ra'ed Fuad Mahmoud |
| author_facet | Mohd Ali, Ly Slesman @ Sulaiman Niaz Ahmad, Mohd Naseem Aldomi, Ra'ed Fuad Mahmoud |
| author_sort | Mohd Ali, Ly Slesman @ Sulaiman |
| collection | UPM |
| description | This paper examines the contingency effects of economic freedom on the growth effect of the exchange rate in a panel of 83 emerging markets and developing countries over the period 1976-2010. Based on the generalized method of moments system estimators (SGMM) that control for the weakness and proliferation of instruments, we uncover positive and significant contingency effects of economic freedom on the growth effect of the real exchange rate undervaluation. The marginal growth effects of the real exchange rate undervaluation are enhanced as countries improve the qualities of their economic institutions. The findings are robust with the exclusion of outliers and oil-exporting countries, alternative measures of real exchange rate undervaluation, additional control variables, subcomponents of economic freedom, and multicollinearity between the interaction term and the original variables. |
| first_indexed | 2024-03-06T09:49:27Z |
| format | Article |
| id | upm.eprints-65355 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:49:27Z |
| publishDate | 2017 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| record_format | dspace |
| spelling | upm.eprints-653552018-10-05T07:45:20Z http://psasir.upm.edu.my/id/eprint/65355/ Economic freedom, real exchange rates and economic growth in emerging markets and developing countries Mohd Ali, Ly Slesman @ Sulaiman Niaz Ahmad, Mohd Naseem Aldomi, Ra'ed Fuad Mahmoud This paper examines the contingency effects of economic freedom on the growth effect of the exchange rate in a panel of 83 emerging markets and developing countries over the period 1976-2010. Based on the generalized method of moments system estimators (SGMM) that control for the weakness and proliferation of instruments, we uncover positive and significant contingency effects of economic freedom on the growth effect of the real exchange rate undervaluation. The marginal growth effects of the real exchange rate undervaluation are enhanced as countries improve the qualities of their economic institutions. The findings are robust with the exclusion of outliers and oil-exporting countries, alternative measures of real exchange rate undervaluation, additional control variables, subcomponents of economic freedom, and multicollinearity between the interaction term and the original variables. Faculty of Economics and Management, Universiti Putra Malaysia 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/65355/1/%285%29%20IJEM%20%28S3%29%202017%20R2%20ECONOMIC%20FREEDOM%2C%20REAL%20EXCHANGE%20RATES%20AND%20ECONOMIC%20GROWTH%20IN%20EMERGING%20MARKETS%20AND%20DEVELOPING%20COUNTRIES.pdf Mohd Ali, Ly Slesman @ Sulaiman and Niaz Ahmad, Mohd Naseem and Aldomi, Ra'ed Fuad Mahmoud (2017) Economic freedom, real exchange rates and economic growth in emerging markets and developing countries. International Journal of Economics and Management, 11 (S3). pp. 641-659. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol11noS3/(5)%20IJEM%20(S3)%202017%20R2%20ECONOMIC%20FREEDOM,%20REAL%20EXCHANGE%20RATES%20AND%20ECONOMIC%20GROWTH%20IN%20EMERGING%20MARKETS%20AND%20DEVELOPING%20COUNTRIES.pdf |
| spellingShingle | Mohd Ali, Ly Slesman @ Sulaiman Niaz Ahmad, Mohd Naseem Aldomi, Ra'ed Fuad Mahmoud Economic freedom, real exchange rates and economic growth in emerging markets and developing countries |
| title | Economic freedom, real exchange rates and economic growth in emerging markets and developing countries |
| title_full | Economic freedom, real exchange rates and economic growth in emerging markets and developing countries |
| title_fullStr | Economic freedom, real exchange rates and economic growth in emerging markets and developing countries |
| title_full_unstemmed | Economic freedom, real exchange rates and economic growth in emerging markets and developing countries |
| title_short | Economic freedom, real exchange rates and economic growth in emerging markets and developing countries |
| title_sort | economic freedom real exchange rates and economic growth in emerging markets and developing countries |
| url | http://psasir.upm.edu.my/id/eprint/65355/1/%285%29%20IJEM%20%28S3%29%202017%20R2%20ECONOMIC%20FREEDOM%2C%20REAL%20EXCHANGE%20RATES%20AND%20ECONOMIC%20GROWTH%20IN%20EMERGING%20MARKETS%20AND%20DEVELOPING%20COUNTRIES.pdf |
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