A Note on Nominal and Real Devaluation in Laos

Phouphet Kyophilavong, Muhammad Shahbaz and Gazi Salah Uddin

Global Business Review, 2015, vol. 16, issue 2, 236-243

Abstract: In this article, we investigate whether or not nominal devaluation leads to real devaluation in Laos by using autoregressive-distributed lag (ARDL) bounds testing and the Granger causality test in a vector error correction model (VECM) framework. Our empirical evidence shows that nominal devaluation Granger causes real devaluation in the short run and the long run. This finding implies that nominal devaluation leads to real devaluation.

Keywords: Nominal devaluation; real devaluation; Laos (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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Working Paper: A Note on Nominal and Real Devaluation in Laos (2014)
Working Paper: A Note on Nominal and Real Devaluation in Laos (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:16:y:2015:i:2:p:236-243

DOI: 10.1177/0972150914564286

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