The impact of the real exchange rate on non-oil exports. Is there an asymmetric adjustment towards the equilibrium?
Abstract
This study investigates the impact of the real exchange rate on the non-oil exports of the Republic of Azerbaijan in the framework of cointegration and an asymmetric error correction. Threshold and Momentum Threshold Autoregressive methods are applied over the quarterly period 2000Q1-2010Q4. The main finding of the study is that there is a long-run relationship between the variables with symmetric rather than asymmetric adjustment towards the equilibrium level.Download Info
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Paper provided by The George Washington University, Department of Economics, Research Program on Forecasting in its series Working Papers with number 2012-005.Length: 24 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:gwc:wpaper:2012-005
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Keywords:This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
- NEP-OPM-2012-06-25 (Open Economy Macroeconomic)
References
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