Exchange-Rate Regime and Economic Growth: A Review of the Theoretical and Empirical Literature

Petreski, Marjan

doi:10.2139/ssrn.1726732

Cited by 13 publications

(3 citation statements)

References 28 publications

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“…The threshold above which exchange rate volatility starts to have negative effects on economic growth varies across countries and depends on the level of development, the degree of financial development, and the exchange rate regime. Petreski (2009) finds evidence that the exchange rate regime does not affect economic growth. The literature suggests that the relationship between exchange rate and GDP growth is complex and may vary depending on the country and specific circumstances.…”

Section: Money Supply (M2)mentioning

confidence: 99%

Nexus between Macroeconomic Factors and Economic Growth in Malaysia: An Autoregressive Distributed Lag Approach

Harun,

Nordin,

Hasbullah

et al. 2023

IMBR

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This study digs into the complex relationship that exists between the development of GDP in Malaysia and major macroeconomic variables. It is of the utmost importance to gain an understanding of the elements that influence GDP development to reduce the risk of sociopolitical instability. Because nations are becoming more aware of the various elements that could potentially affect economic growth, this study was prompted to determine the precise mechanisms that are at play because of this awareness. This study employs the Autoregressive Distributed Lag (ARDL) methodology to yield robust statistical insights into the nexus between macroeconomic variables and economic growth in Malaysia. We have used quarterly data ranging from the initial quarter (Q1) of 2000 to the last quarter (Q4) of 2020 for our analysis. The findings of this study provide important insights into the dynamic links between GDP growth and the selected macroeconomic determinants. As a result, the findings provide policymakers, academics, and practitioners with significant information that can be used to design economic plans that are informed by relevant data. In addition, this study emphasizes the necessity for future research endeavors to go deeper into this topic, bringing attention to the requirement for new views and the active participation of new academics, politicians, and practitioners. This concerted effort is necessary to promote sustainable economic growth and stability in Malaysia and elsewhere.

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Section: Money Supply (M2)mentioning

confidence: 99%

Nexus between Macroeconomic Factors and Economic Growth in Malaysia: An Autoregressive Distributed Lag Approach

Harun,

Nordin,

Hasbullah

et al. 2023

IMBR

View full text Add to dashboard Cite

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“…There is a relatively large body of literature suggesting a correlation between the real exchange rate and G.D.P. growth (Levy-Yeyati & Sturzenegger, 2002;Petreski 2009). Rodrik (2008) concluded that a weak real exchange rate could compensate for institutional weaknesses and market failures which lead to underinvestment in the traded goods sector in developing countries.…”

Section: Empirical Literaturementioning

confidence: 99%

The role of the financial sector in the process of industrialisation in Central and Eastern European countries

Svilokos

Vojinić

Tolić

2019

Economic Research-Ekonomska Istraživanja

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Increasing numbers of economists and policymakers consider that reindustrialisation is a key factor in enhancing economic growth and a better standard of living in post-crisis Europe. Therefore, a new European Union industrial policy focuses on increasing manufacturing share in gross domestic product (G.D.P.). The assumption of recently developed theoretical models states that development of the financial sector is essential for economic growth and therefore for the growth of the manufacturing industry. The aim of this research is to examine the importance of the financial conditions in the process of industrialisation in Central and Eastern European countries. The results of a macro panel model that examines which factors influence the manufacturing value added as a percentage of G.D.P. suggest that the role of the financial sector is very important for the level of industrialisation in the analysed countries. The research is based on data collected from the World Development Indicators database published by the World Bank for the period from 2005 to 2015.

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“…McKenzie (1999) and Bahmani-Oskooee and Hegerty (2007) provide surveys of the literature that studies the impact of exchange rate volatility on trade flows. Petreski (2009) presents a review of the theoretical and the empirical literature on the relationship between exchange rate regime and economic growth. Rossi (2013) reviews the literature on exchange rate forecasting with a critical perspective.…”

Section: Introductionmentioning

confidence: 99%

Exchange Rate Volatility and Governance Indicators

Cakici

2024

IJBMS

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This study investigates the relationships between exchange rate volatility and governance indicators for emerging economies. Government effectiveness and regulatory quality as main indicators of governance are analyzed in terms of their implications for exchange rate volatility for a selected group of emerging countries consisting of Argentina, Mexico, South Africa and Turkey covering the period from 1996 to 2022. Government effectiveness indicator captures perceptions of the quality of public services, the quality of policy formation and implementation, the credibility of the government’s commitment to designed policies, the quality of the civil service and the degree of its independence from political pressures. Regulatory quality indicator measures perceptions of the ability of the government to formulate and implement sound policies and regulations that allow and promote private sector development. It is shown that countries with higher degrees of government effectiveness exhibit lower exchange rate volatility. In addition, higher levels of regulatory quality turn out to be associated with lower exchange rate volatility. These findings yield significant policy implications for emerging countries that experience high exchange rate volatility, which constitutes the major contribution of this study to the literature.

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Exchange-Rate Regime and Economic Growth: A Review of the Theoretical and Empirical Literature

Cited by 13 publications

References 28 publications

Nexus between Macroeconomic Factors and Economic Growth in Malaysia: An Autoregressive Distributed Lag Approach

Nexus between Macroeconomic Factors and Economic Growth in Malaysia: An Autoregressive Distributed Lag Approach

The role of the financial sector in the process of industrialisation in Central and Eastern European countries

Exchange Rate Volatility and Governance Indicators

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