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The impact of the real exchange rate on non-oil exports. Is there an asymmetric adjustment towards the equilibrium?

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  • Hasanov, Fakhri

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.

Suggested Citation

  • Hasanov, Fakhri, 2012. "The impact of the real exchange rate on non-oil exports. Is there an asymmetric adjustment towards the equilibrium?," MPRA Paper 43728, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:43728
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    More about this item

    Keywords

    Asymmetric adjustment; Threshold autoregressive; Momentum-threshold autoregressive; Exchange Rate; Non-oil Export; Azerbaijan Economy;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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