Oil Shocks and Kuwait’s Dinar Exchange Rate: the Dutch Disease Effect
Usama Al-mulali () and
Normee Che Sab
MPRA Paper from University Library of Munich, Germany
Abstract:
This study investigates the impact of oil prices on the exchange rate in Kuwait which uses the fixed exchange rate regime to the US dollar. Time series data from 1970-2008 covering all the oil shocks are used. In order to achieve the results of this study, the VAR model, the Johansen-Juselius Multivariate Cointegration test and the Granger causality test are implemented. Due to the results we have arrived at, we recommend that Kuwait either maintains its exchange rate regime (pegged to a basket of currencies), or uses a crawling peg regime.
Keywords: oil shocks; real exchange rate; Kuwait; VAR (search for similar items in EconPapers)
JEL-codes: E30 F31 Q43 (search for similar items in EconPapers)
Date: 2010-10-12
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-ene and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/26844/2/MPRA_paper_26844.pdf original version (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:26844
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().