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Volatility Exchange Rate and Economic Growth: Insight from ASEAN Member Countries

Author

Listed:
  • Gatot Nazir Ahmad

    (Faculty of Economics Universitas Negeri Jakarta, Komplek IKIP Rawamangun Muka)

  • Haryo Kuncoro

    (Faculty of Economics Universitas Negeri Jakarta, Komplek IKIP Rawamangun Muka)

  • Harmuzan Tazril

    (Faculty of Economics Universitas Negeri Jakarta, Komplek IKIP Rawamangun Muka)

  • Dicky Iranto

    (Faculty of Economics Universitas Negeri Jakarta, Komplek IKIP Rawamangun Muka)

Abstract

This study aims to determine the effect of exchange rate volatility on economic growth in the ASEAN member countries (Indonesia, Thailand, Vietnam, and Cambodia) through investment. Based on the previous studies, the researcher focuses on developing the initial research analysis because it can control different company levels' characteristics and then determine the impact of exchange rate changes on economic growth mediated by investment. There is a limited analysis of whether exchange rate movements encourage overall investment in this study's particular direction. The author's primary focus is whether the export or import channels or both play an essential role in determining a company's investment. This study's population is in ASEAN member countries that have been published by the World Bank (https://www.worldbank.org/) and continue to exist during the period 1998-2019. The sample selection in this study used a purposive sampling method. Some of the ratio data were available in the financial report summary. The analysis method used in the study is the path analysis.

Suggested Citation

  • Gatot Nazir Ahmad & Haryo Kuncoro & Harmuzan Tazril & Dicky Iranto, 2021. "Volatility Exchange Rate and Economic Growth: Insight from ASEAN Member Countries," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 68(4), pages 495-507, November.
    • Handle: RePEc:aic:saebjn:v:68:y:2021:i:4:p:495-507:n:7
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    References listed on IDEAS

    as
    1. Mustafa Caglayan & Rebeca Muñoz Torres, 2011. "The Effect of the Exchange Rates on Investment in Mexican Manufacturing Industry," Open Economies Review, Springer, vol. 22(4), pages 669-683, September.
    2. Mihye Lee, 2017. "The Impact of Exchange Rate on Firm Performance: Evidence from Korean Firms," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(11), pages 2440-2449, November.
    3. Yu, Linhui & Zhao, Dan & Niu, Haixia & Lu, Futao, 2020. "Does the belt and road initiative expand China's export potential to countries along the belt and road?," China Economic Review, Elsevier, vol. 60(C).
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