SHORT AND LONG TERM ANALYSIS OF FOREIGN EXCHANGE RATES BASED ON INCOME LEVELS
SHORT AND LONG TERM ANALYSIS OF FOREIGN EXCHANGE RATES BASED ON INCOME LEVELS
Author(s): Harunurrasyid Harunurrasyid, Mardalena Mardalena, Imam Asngari, Siti Rohima, Sri AndaiyaniSubject(s): International relations/trade, Post-War period (1950 - 1989), Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets
Published by: Editura Fundaţiei România de Mâine
Keywords: Remittance; Export; Import; Inflation; ARDL Panel;
Summary/Abstract: The study aimed to determine the effect of foreign exchange demand and supply on exchange rates in four groups of countries based on per capita income levels from 1989-2018 using the ARDL panel method. The results showed remittances had a significant effect on exchange rates in panel A (low income countries), panel B (lower middle income countries), panel D (high income countries), while on panel C (upper middle income countries) remittances had no significant effect. Export and import variables have a significant effect on panels B, C, and D, and are not significant on panel A. Meanwhile inflation variables have a significant effect on all types of panels.
Journal: Journal of Economic Development, Environment and People
- Issue Year: 11/2022
- Issue No: 2
- Page Range: 55-72
- Page Count: 18
- Language: English