Exchange rate and trade balance relationship : empirical study in Cambodia, Thailand and vietnam
The purpose of this study is to investigate the relationship between exchange rate and trade balance in both short run and long run for three Indo-China countries, namely Cambodia, Thailand and Vietnam for the period from 1994 (IV) to 2010 (IV). The stationary test, ARDL bounds test and Granger caus...
Saved in:
| Main Author: | |
|---|---|
| Format: | Final Year Project Report |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak, (UNIMAS)
2012
|
| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/10182/5/Michelle%20full.pdf http://ir.unimas.my/id/eprint/10182/ |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | The purpose of this study is to investigate the relationship between exchange rate and trade balance in both short run and long run for three Indo-China countries, namely Cambodia, Thailand and Vietnam for the period from 1994 (IV) to 2010 (IV). The stationary test, ARDL bounds test and Granger causality have been used in the study. The empirical results indicate that although there is no long run relationship found between the exchange rate and trade balance in Cambodia, Thailand and
Vietnam but the exchange rate does have impact on trade balance in these countries in the short run. These findings are important to policy makers to adopt an
appropriate exchange rate regime to obtain a desired effect of trade balance. |
|---|