Cover Image

Economic freedom, real exchange rates and economic growth in emerging markets and developing countries

This paper examines the contingency effects of economic freedom on the growth effect of the exchange rate in a panel of 83 emerging markets and developing countries over the period 1976-2010. Based on the generalized method of moments system estimators (SGMM) that control for the weakness and prolif...

Full description

Saved in:
Bibliographic Details
Main Authors: Mohd Ali, Ly Slesman @ Sulaiman, Niaz Ahmad, Mohd Naseem, Aldomi, Ra'ed Fuad Mahmoud
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2017
Online Access:http://psasir.upm.edu.my/id/eprint/65355/1/%285%29%20IJEM%20%28S3%29%202017%20R2%20ECONOMIC%20FREEDOM%2C%20REAL%20EXCHANGE%20RATES%20AND%20ECONOMIC%20GROWTH%20IN%20EMERGING%20MARKETS%20AND%20DEVELOPING%20COUNTRIES.pdf
http://psasir.upm.edu.my/id/eprint/65355/
http://www.ijem.upm.edu.my/vol11noS3/(5)%20IJEM%20(S3)%202017%20R2%20ECONOMIC%20FREEDOM,%20REAL%20EXCHANGE%20RATES%20AND%20ECONOMIC%20GROWTH%20IN%20EMERGING%20MARKETS%20AND%20DEVELOPING%20COUNTRIES.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.upm.eprints.65355
record_format eprints
spelling my.upm.eprints.653552018-10-05T07:45:20Z http://psasir.upm.edu.my/id/eprint/65355/ Economic freedom, real exchange rates and economic growth in emerging markets and developing countries Mohd Ali, Ly Slesman @ Sulaiman Niaz Ahmad, Mohd Naseem Aldomi, Ra'ed Fuad Mahmoud This paper examines the contingency effects of economic freedom on the growth effect of the exchange rate in a panel of 83 emerging markets and developing countries over the period 1976-2010. Based on the generalized method of moments system estimators (SGMM) that control for the weakness and proliferation of instruments, we uncover positive and significant contingency effects of economic freedom on the growth effect of the real exchange rate undervaluation. The marginal growth effects of the real exchange rate undervaluation are enhanced as countries improve the qualities of their economic institutions. The findings are robust with the exclusion of outliers and oil-exporting countries, alternative measures of real exchange rate undervaluation, additional control variables, subcomponents of economic freedom, and multicollinearity between the interaction term and the original variables. Faculty of Economics and Management, Universiti Putra Malaysia 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/65355/1/%285%29%20IJEM%20%28S3%29%202017%20R2%20ECONOMIC%20FREEDOM%2C%20REAL%20EXCHANGE%20RATES%20AND%20ECONOMIC%20GROWTH%20IN%20EMERGING%20MARKETS%20AND%20DEVELOPING%20COUNTRIES.pdf Mohd Ali, Ly Slesman @ Sulaiman and Niaz Ahmad, Mohd Naseem and Aldomi, Ra'ed Fuad Mahmoud (2017) Economic freedom, real exchange rates and economic growth in emerging markets and developing countries. International Journal of Economics and Management, 11 (S3). pp. 641-659. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol11noS3/(5)%20IJEM%20(S3)%202017%20R2%20ECONOMIC%20FREEDOM,%20REAL%20EXCHANGE%20RATES%20AND%20ECONOMIC%20GROWTH%20IN%20EMERGING%20MARKETS%20AND%20DEVELOPING%20COUNTRIES.pdf
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This paper examines the contingency effects of economic freedom on the growth effect of the exchange rate in a panel of 83 emerging markets and developing countries over the period 1976-2010. Based on the generalized method of moments system estimators (SGMM) that control for the weakness and proliferation of instruments, we uncover positive and significant contingency effects of economic freedom on the growth effect of the real exchange rate undervaluation. The marginal growth effects of the real exchange rate undervaluation are enhanced as countries improve the qualities of their economic institutions. The findings are robust with the exclusion of outliers and oil-exporting countries, alternative measures of real exchange rate undervaluation, additional control variables, subcomponents of economic freedom, and multicollinearity between the interaction term and the original variables.
format Article
author Mohd Ali, Ly Slesman @ Sulaiman
Niaz Ahmad, Mohd Naseem
Aldomi, Ra'ed Fuad Mahmoud
spellingShingle Mohd Ali, Ly Slesman @ Sulaiman
Niaz Ahmad, Mohd Naseem
Aldomi, Ra'ed Fuad Mahmoud
Economic freedom, real exchange rates and economic growth in emerging markets and developing countries
author_facet Mohd Ali, Ly Slesman @ Sulaiman
Niaz Ahmad, Mohd Naseem
Aldomi, Ra'ed Fuad Mahmoud
author_sort Mohd Ali, Ly Slesman @ Sulaiman
title Economic freedom, real exchange rates and economic growth in emerging markets and developing countries
title_short Economic freedom, real exchange rates and economic growth in emerging markets and developing countries
title_full Economic freedom, real exchange rates and economic growth in emerging markets and developing countries
title_fullStr Economic freedom, real exchange rates and economic growth in emerging markets and developing countries
title_full_unstemmed Economic freedom, real exchange rates and economic growth in emerging markets and developing countries
title_sort economic freedom, real exchange rates and economic growth in emerging markets and developing countries
publisher Faculty of Economics and Management, Universiti Putra Malaysia
publishDate 2017
url http://psasir.upm.edu.my/id/eprint/65355/1/%285%29%20IJEM%20%28S3%29%202017%20R2%20ECONOMIC%20FREEDOM%2C%20REAL%20EXCHANGE%20RATES%20AND%20ECONOMIC%20GROWTH%20IN%20EMERGING%20MARKETS%20AND%20DEVELOPING%20COUNTRIES.pdf
http://psasir.upm.edu.my/id/eprint/65355/
http://www.ijem.upm.edu.my/vol11noS3/(5)%20IJEM%20(S3)%202017%20R2%20ECONOMIC%20FREEDOM,%20REAL%20EXCHANGE%20RATES%20AND%20ECONOMIC%20GROWTH%20IN%20EMERGING%20MARKETS%20AND%20DEVELOPING%20COUNTRIES.pdf
_version_ 1643838290352144384
score 13.211869

Similar Items