IDEAS home Printed from https://ideas.repec.org/a/fau/fauart/v73y2023i2p134-161.html
   My bibliography  Save this article

Is There an Asymmetric Effect Between the Exchange Rate and the Gross Domestic Product of Southeastern European Countries?

Author

Listed:
  • Safet Kurtovic

    (Faculty of Management and Business Economics, University of Travnik, Bosnia and Herzegovina)

  • Nehat Maxhuni

    (Faculty of Engineering Management, University Union Nikola Tesla, Belgrade, Serbia)

  • Blerim Halili

    (Faculty of Engineering Management, University Union Nikola Tesla, Belgrade, Serbia)

  • Flakron Shala

    (Elanor, Prague, Czechia)

Abstract

The main goal of this paper is to examine if there is an asymmetric effect of the exchange rate (ER) on the GDP of the five SEE countries. A nonlinear autoregressive distributed lag (NARDL) model was used, as well as quarterly data from the period 2000Q1 to 2020Q4 across a sample of the five SEE countries (Bulgaria, Croatia, Romania, Serbia and Slovenia). In the long and short run, this study found an asymmetric effect of ER on the GDP of Croatia, Romania and Serbia. In the long run, it was found that appreciation and depreciation have expansionary effect on the GDP of Croatia and Romania. For Croatia, it was found that expansionary appreciation has stronger effect on the GDP, relative to expansionary depreciations, while for Romania expansionary depreciation has stronger effect on the GDP, relative to expansionary appreciation. In the end, for Serbia, it was found that appreciation has an expansionary effect on the GDP, while the depreciation effect is neutral.

Suggested Citation

  • Safet Kurtovic & Nehat Maxhuni & Blerim Halili & Flakron Shala, 2023. "Is There an Asymmetric Effect Between the Exchange Rate and the Gross Domestic Product of Southeastern European Countries?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 73(2), pages 134-161, June.
    • Handle: RePEc:fau:fauart:v:73:y:2023:i:2:p:134-161
    as

    Download full text from publisher

    File URL: https://journal.fsv.cuni.cz/mag/article/show/id/1516
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    depreciation; appreciation; expansionary; contractionary; asymmetry;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

    Statistics

    Access and download statistics

    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:fau:fauart:v:73:y:2023:i:2:p:134-161. 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: Natalie Svarcova (email available below). General contact details of provider: https://edirc.repec.org/data/icunicz.html .

    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.