IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v4y2014i4p517-528id1175.html
   My bibliography  Save this article

The Effect of Exchange Rate Fluctuations on Economic Growth Considering the Level of Development of Financial Markets in Selected Developing Countries

Author

Listed:
  • Mehdi Basirat
  • Arezoo Nasirpour
  • Alireza Jorjorzadeh

Abstract

This study aimed to investigate the effect of exchange rate fluctuations on economic growth considering the rate of development of financial markets in developing countries over the period 1986-2010. The effects of variables such as trading volume, inflation, and production of the previous period on economic growth have been studied as well. The results obtained by analyzing panel data of 18 countries show that the effect of financial development on economic growth as well as the effect of exchange rate fluctuation on economic growth are negative and significant. On the other hand, the mutual effect of exchange rate fluctuations and financial development on economic growth is positive, but the effect in the studied countries is so small that is not statistically significant.

Suggested Citation

  • Mehdi Basirat & Arezoo Nasirpour & Alireza Jorjorzadeh, 2014. "The Effect of Exchange Rate Fluctuations on Economic Growth Considering the Level of Development of Financial Markets in Selected Developing Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(4), pages 517-528.
    • Handle: RePEc:asi:aeafrj:v:4:y:2014:i:4:p:517-528:id:1175
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1175/1709
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zainab Jehan & Iffat Irshad, 2020. "Exchange Rate Misalignment and Economic Growth inPakistan: The Role of Financial Development," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(1), pages 81-99.
    2. Deeviya Patel & Gisele Mah, 2018. "Relationship between Real Exchange Rate and Economic Growth: the case of South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 10(1), pages 146-158.
    3. Ruwan Jayathilaka & Rishani Rathnayake & Bhakthi Jayathilake & Thanuja Dharmasena & Dananja Bodinayake & Deumi Kathriarachchi, 2023. "Exploring the growth direction: the impact of exchange rate and purchasing managers index on economic growth in Sri Lanka," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 2687-2703, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:4:y:2014:i:4:p:517-528:id:1175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.