IDEAS home Printed from https://ideas.repec.org/a/eme/jcefts/jcefts-01-2019-0007.html
   My bibliography  Save this article

Macroeconomic fundamentals and exchange rates in South Asian economies

Author

Listed:
  • Muhammad Umar Draz
  • Fayyaz Ahmad
  • Bhumika Gupta
  • Waqas Amin

Abstract

Purpose - This study aims to examine the impact of macroeconomic fundamentals on exchange rates of selected South Asian economies during 1981-2013. Design/methodology/approach - The authors have used two econometric approaches to the data. For the pooled sample, estimated generalized least square (EGLS) and the two-stage least square method are applied. For the panel data, the authors have used the panel generalized method of moments and ordinary least squares (OLS) methods. Findings - The results suggest that macroeconomic factors have a significant impact on exchange rates. The robust findings highlight that improvements in domestic economic and political systems are crucial for a successful exchange rate policy. Originality/value - The existing literature on exchange rate fundamentals have either focused on exchange rates and international trade or investigated the relationship for the developed economies. Covering a period of more than three decades, and using both pooled and panel estimations, our study is unique in terms of its focus on the South Asian economies.

Suggested Citation

  • Muhammad Umar Draz & Fayyaz Ahmad & Bhumika Gupta & Waqas Amin, 2019. "Macroeconomic fundamentals and exchange rates in South Asian economies," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 12(2), pages 104-119, June.
    • Handle: RePEc:eme:jcefts:jcefts-01-2019-0007
    DOI: 10.1108/JCEFTS-01-2019-0007
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JCEFTS-01-2019-0007/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JCEFTS-01-2019-0007/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JCEFTS-01-2019-0007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jcefts:jcefts-01-2019-0007. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.