Effects of Changes in Foreign Exchange Reserves and Real Effective Exchange Rate on Industrial Output Growths in Bangladesh

Asian Economic and Financial Review

关键词: Foreign exchange reserves;    Real effective exchange rate;    Industrial output;    ARDL;    VECM.;   

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This paper studies the effects of foreign exchange reserves and real effective exchange rate on industrial output in Bangladesh. Quarterly data are used from 1981-1982 to 2013-2014. The standard ARDL procedure and VECM are applied. Both DF-GLS and Ng-Perron efficient tests exhibit non-stationarity of each variable in log-level with I (1) behavior. The ARDL estimates provide evidence of co-integration among the variables. The VECM estimates confirm convergence with moderate pace of adjustment toward long-run equilibrium. Short-run net interactive effect of foreign reserves on industrial output is weakly positive while the net effect of real effective exchange rate is negative.

【 授权许可】

CC BY