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Cross-cultural study the macro variables and its impact on exchange rate regimes

Author

Listed:
  • Muhammad Naveed Jamil

    (Khwaja Fareed University of Engineering and Information Technology)

  • Abdul Rasheed

    (Khwaja Fareed University of Engineering and Information Technology)

  • Adnan Maqbool

    (Khwaja Fareed University of Engineering and Information Technology)

  • Zeeshan Mukhtar

    (Khwaja Fareed University of Engineering and Information Technology)

Abstract

This is an empirical analysis of study simultaneously focus on examining the impact of macroeconomic variables, i.e., GDP growth, GDP per capita, inflation, foreign direct investment, exports, imports, interest rates, foreign debt and foreign reserves on the exchange rate regimes, using the sample of five countries from MSCI developed markets index, emerging markets index and frontier markets index each from 1970 to 2020. This study predicts and provides several essential contributions for markets, financial and economic, that fills the gaps in the markets economic and financial literacy of desired countries. The study identifies and evaluates the impact using the most advanced statistical frameworks. This study adopts ML—binary logit (quadratic hill climbing) and investigates the change in the exchange rate regimes due to macroeconomic variables. The empirical results confirm that Australia, Hong Kong, Japan, New Zealand and Singapore markets take timely correct exchange rate regimes decisions, which lead to developed markets. As emerging markets and frontier markets never adopt the exchange rate regimes three, four, and six, which is a significant impact factor that affects those markets never growth according develops markets. Foreign debts, inflation and foreign reserves are severe challenges for emerging and frontier markets.

Suggested Citation

  • Muhammad Naveed Jamil & Abdul Rasheed & Adnan Maqbool & Zeeshan Mukhtar, 2023. "Cross-cultural study the macro variables and its impact on exchange rate regimes," Future Business Journal, Springer, vol. 9(1), pages 1-15, December.
  • Handle: RePEc:spr:futbus:v:9:y:2023:i:1:d:10.1186_s43093-023-00189-1
    DOI: 10.1186/s43093-023-00189-1
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    Cited by:

    1. Muhammad Subhan & Muhammad Tayyab & Farooq Ali & Atta Ur Rahman & Asia Ahmad & Tofail Ahmed & Muhammad Naveed Jamil, 2023. "Impact Of Exchange Rate, Oil Prices, And Stock Market: Evidence From Pakistan Stock Exchange (Time Series Data Analysis)," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(2), pages 93-103.
    2. Muhammad Naveed Jamil & Hafsa Khan & Zuhaib Nishtar & Dr. Abdul Rasheed, 2023. "Exploring The Role Of Stock Exchanges And Exchange Rates For Sustainable Economic Development: A Cross Culture Study Of Emerging And Developed Markets," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(2), pages 308-319.
    3. Muhammad Naveed Jamil & Dr. Abdul Rasheed, 2023. "Role Of External Finance And Innovation In Achieving Eco-Efficiency And Sustainable Development Goals," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(2), pages 339-355.
    4. Muhammad Naveed Jamil & Abdul Rasheed, 2024. "Dynamic Effect of External Finance in Achieving Eco-efficiency and Sustainable Development Goals," Journal of Economic Impact, Science Impact Publishers, vol. 6(2), pages 115-124.

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