Advanced Search
MyIDEAS: Login

The Shock Absorber Role Of Exchange Rate: An Application On Selected Developing Countries

Contents:

Author Info

  • Sinem SEFÝL

    (Istanbul Ticaret Universitesi)

Registered author(s):

    Abstract

    The frequency and sphere of influence of the economic shocks began to extend with the acceleration of the global economic integration. The exchange rate is regarded as an important policy instrument in terms of the destroying of the harmful effects of these shocks on economy. The aim of this study is to investigate the shock absorber role of the exchange rate in selected open developing economies: Turkey, Brazil, Mexico, In this context, the structural VAR framework with long run and short run restrictions is employed. The exchange rate can behave as an shock absorber only if shocks have asymmetric property. Our study finds that, real shocks in Turkey and Brazil relative to the trading partner have been asymmetric during the both the pre-and post-crisis periods. In Mexico, the exchange rate is a potential shock absorber for only supply shocks in post-crisis period. In this framework, it is found that exchange rate has an efficient shock absorbing role for mentioned countries. Also, it does not breed its own shocks.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ticaret.edu.tr/RePEc/icu/journl/s21/305_328.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Istanbul Commerce University in its journal Istanbul Commerce University Journal of Social Sciences.

    Volume (Year): 21 (2012)
    Issue (Month): 1 ()
    Pages: 305-328

    as in new window
    Handle: RePEc:icu:journl:v:21:y:2012:i:1:p:305-328

    Contact details of provider:
    Web page: http://www.ticaret.edu.tr
    More information through EDIRC

    Related research

    Keywords: Exchange Rate; Structural VAR; asymmetrical shocks.;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:icu:journl:v:21:y:2012:i:1:p:305-328. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elcin Aykac Alp).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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