Does exchange rate policy matter for economic growth? Vietnam evidence from a co-integration approach
AbstractBoth economic growth and exchange rate theories suggest that the exchange rate regime could have consequences for the medium-term growth of a country, directly, through its effects on the adjustment to shocks, and indirectly, through its impact on the important determinants of growth. It is, however, surprising that there was little empirical work investigating the indirect relationship between the exchange rate policy and economics growth in the case of a specific country. In a co-integration framework, our research attempts to fill the gap by econometrically investigating the possible impacts of exchange rate regime on economic growth through two main channels - Foreign direct investment (FDI) and Exports - in the case of Vietnam - a successful example of a transitional economy.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 30 (2010)
Issue (Month): 1 ()
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Exports; Exchange Rate; FDI; Growth; Co-integration;
Find related papers by JEL classification:
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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