IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v31y1999i3p347-358.html
   My bibliography  Save this article

Economic growth and exchange rate uncertainty

Author

Listed:
  • Joe Tharakan

Abstract

Recent research carried out within the framework of endogenous growth theory has confirmed the positive impact of the openness of an economy on its economic growth. This paper extends that line of investigation further and analyses the effect of exchange rate uncertainty (ERU) on growth. First, it is shown theoretically how ERU can adversely affect the endogenous growth process. Exchange rate uncertainty is then quantified for 21 OECD countries. Finally, panel regressions which use the above measures of ERU together with other determinants are carried out to explain the growth rates of the above group of countries. Results show that exchange rate uncertainty has a negative impact on long-term growth.

Suggested Citation

  • Joe Tharakan, 1999. "Economic growth and exchange rate uncertainty," Applied Economics, Taylor & Francis Journals, vol. 31(3), pages 347-358.
    • Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:347-358
    DOI: 10.1080/000368499324336
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324336
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/000368499324336?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Harrison, Ann, 1996. "Openness and growth: A time-series, cross-country analysis for developing countries," Journal of Development Economics, Elsevier, vol. 48(2), pages 419-447, March.
    2. De Grauwe, Paul, 1996. "International Money: Postwar Trends and Theories," OUP Catalogue, Oxford University Press, edition 2, number 9780198775133, Decembrie.
    3. Richard E. Baldwin, 1992. "On the Growth Effects of Import Competition," NBER Working Papers 4045, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Tang, Bo, 2015. "Real exchange rate and economic growth in China: A cointegrated VAR approach," China Economic Review, Elsevier, vol. 34(C), pages 293-310.
    2. Chen Ku‐Hsieh, 2021. "Depreciate to save the economy? An empirical evidence worldwide," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 1563-1585, January.
    3. Mehdi Seraj & Pejman Bahramian & Abdulkareem Alhassan & Rasool Dehghanzadeh Shahabad, 2020. "The validity of Rodrik’s conclusion on real exchange rate and economic growth: factor priority evidence from feature selection approach," Palgrave Communications, Palgrave Macmillan, vol. 6(1), pages 1-6, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ben-David, Dan & Loewy, Michael B, 1998. "Free Trade, Growth, and Convergence," Journal of Economic Growth, Springer, vol. 3(2), pages 143-170, June.
    2. Blanco, Luisa & Grier, Robin, 2012. "Natural resource dependence and the accumulation of physical and human capital in Latin America," Resources Policy, Elsevier, vol. 37(3), pages 281-295.
    3. Felina B. Duncan & Zulal S. Denaux, 2013. "Determinants Of Economic Success In The Middle East And North Africa," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 7(5), pages 25-34.
    4. Måns Söderbom & Francis Teal, 2003. "Openness and human capital as sources of productivity growth: An empirical investigation," CSAE Working Paper Series 2003-06, Centre for the Study of African Economies, University of Oxford.
    5. Eleanor Doyle & Inmaculada Martínez-Zarzoso, 2006. "Relating Productivity and Trade 1980-2000: A Chicken and Egg Analysis," Ibero America Institute for Econ. Research (IAI) Discussion Papers 147, Ibero-America Institute for Economic Research.
    6. Doko Tchatoka, Firmin & Dufour, Jean-Marie, 2020. "Exogeneity tests, incomplete models, weak identification and non-Gaussian distributions: Invariance and finite-sample distributional theory," Journal of Econometrics, Elsevier, vol. 218(2), pages 390-418.
    7. Sarath Delpachitra & Pham Van Dai, 2012. "The Determinants of TFP Growth in Middle Income Economies in ASEAN: Implication of Financial Crises," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 11(1), pages 63-88, June.
    8. Wessel, Jan, 2019. "Evaluating the transport-mode-specific trade effects of different transport infrastructure types," Transport Policy, Elsevier, vol. 78(C), pages 42-57.
    9. Chiara Binelli, 2008. "Returns to Education and Increasing Wage Inequality in Latin America," Working Paper series 30_08, Rimini Centre for Economic Analysis.
    10. Borsky, Stefan & Kalkschmied, Katja, 2019. "Corruption in space: A closer look at the world's subnations," European Journal of Political Economy, Elsevier, vol. 59(C), pages 400-422.
    11. Baldwin, Richard E. & Seghezza, Elena, 1996. "The New Growth Theory: Its Logic and Trade Policy Implications," 1996: Implications of the New Growth Theory to Agricultural Trade Research and Trade Policy Conference, December 1996, Washington DC 50862, International Agricultural Trade Research Consortium.
    12. Lloyd, P. J. & MacLaren, Donald, 2000. "Openness and growth in East Asia after the Asian crisis," Journal of Asian Economics, Elsevier, vol. 11(1), pages 89-105.
    13. Alali, Walid Y., 2009. "Economic Performance and Institutions: Measuring Technical Efficiency Using SPF Approach," MPRA Paper 114336, University Library of Munich, Germany, revised Aug 2009.
    14. Bouët, Antoine & Cosnard, Lionel & Laborde, David, 2017. "Measuring Trade Integration in Africa," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 32(4), pages 937-977.
    15. Michael Bleaney & Mo Tian, 2023. "The trade‐GDP ratio as a measure of openness," The World Economy, Wiley Blackwell, vol. 46(5), pages 1319-1332, May.
    16. Svaleryd, Helena & Vlachos, Jonas, 2002. "Markets for risk and openness to trade: how are they related?," Journal of International Economics, Elsevier, vol. 57(2), pages 369-395, August.
    17. Fernandes, Ana M., 2007. "Trade policy, trade volumes and plant-level productivity in Colombian manufacturing industries," Journal of International Economics, Elsevier, vol. 71(1), pages 52-71, March.
    18. Faridul Islam & Qazi Muhammad Adnan Hye & Muhammad Shahbaz, 2012. "Import‐economic growth nexus: ARDL approach to cointegration," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 5(3), pages 194-214, September.
    19. Hakimi, Abdelaziz & Hamdi, Helmi, 2016. "Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1445-1456.
    20. Abo-Zaid Salem M, 2011. "The Trade-Growth Relationship in Israel Revisited: Evidence from Annual Data, 1960-2004," Review of Middle East Economics and Finance, De Gruyter, vol. 6(3), pages 63-93, February.

    More about this item

    Statistics

    Access and download statistics

    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:taf:applec:v:31:y:1999:i:3:p:347-358. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.