Revisiting the nexus between exchange rate, exports and economic growth

Further evidence from Asia

Datos Bibliográficos

ID15068120
AutoresWei Zhu (0000-0002-8200-9230, Lanzhou University), Fayyaz Ahmad (0000-0001-9038-0817, Lanzhou University, autor de correspondencia), Muhammad Umar Draz (0000-0001-5043-3136, Toronto School of Management, Toronto, Ontario, Canada), Ilhan Ozturk (0000-0002-6521-0901, Faculty of Economics and Administrative Sciences, Cag University, Mersin, Turkey, autor de correspondencia), Abdul Rehman (0000-0001-7809-5124, Henan Agricultural University)
Año2022
Volumen35
Número1
Páginas7128-7146
Fecha de publicación2022-12-31
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomic Research-Ekonomska Istraživanja (JOURNAL)
Identificadores de la revistaISSN: 1331-677X • E-ISSN: 1848-9664
EditorialInforma UK Limited (PUBLISHER • GB)
DOI10.1080/1331677x.2022.2059692
OpenAlexW4281672132
IdiomaEN
Citas recibidas3
Referencias citadas47

The economic growth of developing countries has been associated with their exports, and the existing research suggests that exchange rates significantly influence the exports. This study used panel data to investigate the potential nexus of gross domestic product (GDP), exports and exchange rates in Asian countries over the period of 1981–2016. The results portray that nexus between exchange rate and exports holds true for Export-led Growth (ELG) and Growth-led Exports (GLE) hypotheses. This study used the Wald test under Vector Error Correction Model (VECM) with all necessary specifications tests to identify the possible nexus of variables, and applied the fixed effects model along with control variables. The results imply that an undervalued currency enhances exports and has a significant impact on economic growth. Additionally, the results of Fully Modified Ordinary Least Squares (FMOLS) model with financial crises dummy suggested that the estimations are robust. Keeping in view the aforementioned findings, a timely and balanced policy can play a pivotal role in improving the long term nexus of exchange rates, exports and economic growth

Economics · Exchange rate · International economics · International trade · Macroeconomics · Computer Science · Global Financial Crisis and Policies · Global trade and economics · Monetary Policy and Economic Impact