... ratio of the purchasing power parity conversion factor to the market exchange rate. This relationship explains why remittance flows depreciate the real exchange rate. The study’s results also indicated that attracting investments can improve the quality of institutions despite high tax rates, leading...

...Masagus M. Ridhwan; Affandi Ismail; Peter Nijkamp Purpose Empirical studies regarding the impact of the real exchange rate (RER) on economic growth are extensively available. However, the literature as a whole appears to report varying results, while the causes of such differences have not been...

...Christina Anderl; Guglielmo Maria Caporale Purpose This paper aims to explain real exchange rate fluctuations by means of a model including both standard fundamentals and two alternative measures of inflation expectations for five inflation targeting countries (the UK, Canada, Australia, New...

..., the coefficients of long-run elasticities show appreciation of real exchange rate (RER) due to increase in productivity in the case of “traditional approach”, whereas depreciation of RER in the case of “benchmark approach”. Second, by applying the Dumitrescu-Hurlin panel Granger causality test, the results reveal...

... that an increase by one standard deviation in real exchange rate causes a decline in employees' wages by 2.69%. Research limitations/implications The policy implications of our results are drawn from the significant threshold estimates. However, a significant threshold value of 15.12 is an inflation-threshold...

... of the exchange rate go beyond a zone of inaction, which the authors call “play” area – analogous to mechanical play. The authors implement an algorithm describing path-dependent play hysteresis into a regression framework. The hysteretic impact of real exchange rates on exports is estimated based on the period...

... [2] . The real exchange rate appreciated even as the FD fell in 2013-2015. A rise in the FD should raise the CAD and appreciate the real exchange rate in a floating regime as a higher government demand raises prices – but does this hold in India after taking out the effect of endogenous variables...

...Carolina Troncoso Baltar; Celio Hiratuka; Gilberto Tadeu Lima Purpose – The purpose of this paper is to study the impact of the real exchange rate on investment in the Brazilian manufacturing industry. Design/methodology/approach – The authors develop an investment model that considers...

...Hock Tsen Wong Purpose The purpose of this study is to examine real exchange rate misalignment and economic growth in Malaysia. Design/methodology/approach The result of the autoregressive distributed lag (ARDL) approach and the generalized forecast error variance decomposition. Findings...