On the Relation between Domestic Output and Exchange Rate in 68 Countries: An Asymmetry Analysis
Mohsen Bahmani-Oskooee () and
MPRA Paper from University Library of Munich, Germany
In an effort to engage in the most comprehensive analysis of the asymmetric effects of exchange rate changes on domestic production, we concentrate on bivariate linear and nonlinear models where domestic output is regressed on the real effective exchange rate. By using annual data from each of the 68 countries in our sample, the findings favor the nonlinear model and nonlinear adjustment of the exchange rate. Exchange rate changes are shown to have short-run asymmetric effects in almost all models. However, the short-run effects translate into long-run asymmetric effects in 24 countries only, though the findings are country specific.
Keywords: Domestic Output; Exchange Rate; Asymmetry; Nonlinear ARDL; 68 Countries (search for similar items in EconPapers)
JEL-codes: F3 F31 (search for similar items in EconPapers)
Date: 2017-03-10, Revised 2017-04-05
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/82939/1/MPRA_paper_82939.pdf original version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:82939
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 ().