EconPapers    
Economics at your fingertips  
 

Effects of Changes in Foreign Exchange Reserves and Real Effective Exchange Rate on Industrial Output Growths in Bangladesh

Matiur Rahman and Prashanta K. Banerjee
Additional contact information
Matiur Rahman: Professor of Finance, McNeese State University, 4205 Ryan Street Lake Charles, LA, USA
Prashanta K. Banerjee: Professor of Banking and Finance, Bangladesh Institute of Bank Management, Mirpur, Dhaka, Bangladesh

Asian Economic and Financial Review, 2017, vol. 7, issue 12, 1144-1152

Abstract: This paper studies the effects of foreign exchange reserves and real effective exchange rate on industrial output in Bangladesh. Quarterly data are used from 1981-1982 to 2013-2014. The standard ARDL procedure and VECM are applied. Both DF-GLS and Ng-Perron efficient tests exhibit non-stationarity of each variable in log-level with I (1) behavior. The ARDL estimates provide evidence of co-integration among the variables. The VECM estimates confirm convergence with moderate pace of adjustment toward long-run equilibrium. Short-run net interactive effect of foreign reserves on industrial output is weakly positive while the net effect of real effective exchange rate is negative.

Keywords: Foreign exchange reserves; Real effective exchange rate; Industrial output; ARDL; VECM. (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.aessweb.com/download.php?id=3919 (application/pdf)
http://www.aessweb.com/journals/5002/December2017 (text/html)

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:asi:aeafrj:2017:p:1144-1152

Access Statistics for this article

Asian Economic and Financial Review is currently edited by Dr. Qazi Muhammad Adnan Hye

More articles in Asian Economic and Financial Review from Asian Economic and Social Society Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan.
Bibliographic data for series maintained by Qazi Muhammad Imran ().

 
Page updated 2018-11-14
Handle: RePEc:asi:aeafrj:2017:p:1144-1152