The current analysis contributes to the literature on real exchange rate effect of development aid by separating allocated trade sector (Aid for Trade – AfT) from other flows. empirical findings show that higher AfT flows lead a depreciation in recipient economies, while generate an appreciation rate. total works through openness, export product diversification, and inward foreign direct invest...

Purpose The relationship between real exchange rate and services export diversification is at the heart of this study. Design/methodology/approach analysis performed using a sample 113 countries over period 1985–2014, 2-step system Generalized Method Moments (GMM) approach. uses both Theil index Herfindahl–Hirschman concentration. Findings shows that full sample, effective appreciation induces ...

crude oil price and the u.s. effective exchange rate are two main economic variables that have had real effects on world welfare situation. the aim of this paper is to test whether there is a stable long-run relationship between oil prices and the u.s. dollar, expressed in real term. to this end, we perform co-integration and causality tests between the two variables, using quarterly data from ...

This study examines the impacts of real exchange rate fluctuations on the companies' strategic investments in Iran. The data of 92 listed companies in Tehran Stock Exchange during the period of 2002-2015areused. First, the volatility of exchange rate is estimated by the Generalized Autoregressive Conditional Heteroskedasticity (GARCH). The model is estimated by GMM and system GMM methods. The r...

assumption of exchange rate overshooting has significant position in international macroeconomic discussion. this phenomenon is one of the abnormal behaviors of exchange rate that happen in short run. dornbusch (1976) shows that because speed of equilibrium prices is slow relative to asset markets and commodity prices are sticky in the short run, however, over time, commodity prices will rise a...

This study examines the effects of taxes on the real exchange rate through their marginal impacts on economic activity. We develop a model that shows that an increase in the capital interest tax rate leads to real domestic currency depreciation while an increase in wage or consumption tax rates lead to a real domestic currency appreciation. These theoretical findings are supported by an empiric...