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Exchange Rate Volatility and its Impact on Industrial Production, Before and After the Introduction of Common Currency in Europe

Year 2012, Volume: 2 Issue: 2, 85 - 109, 01.06.2012

Abstract

We explored the impact of exchange rate volatility on industrial production before and after the introduction of common currency for eleven European countries included in European Monetary Union and for four European countries that did not adopt ‘Euro’ as common currency. Study employed monthly data of exchange rate and macroeconomic variables from January 1980 to April 2009 for the analysis. We employed AR(k)-EGARCH(p,q) models for calculation of volatility in growth rate of nominal and real exchange rates for all countries before and after the introduction of common currency separately. In this paper, we used Pooled IV/TSLS. We can conclude that all the countries enjoyed benefits after the introduction of common currency by reduction in negative impacts of real exchange rate volatility even some countries also faced increase in real exchange rate volatility. More than this, it can also be concluded that basket of fruits is not same for every country that joined common currency.

Year 2012, Volume: 2 Issue: 2, 85 - 109, 01.06.2012

Abstract

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Details

Other ID JA29YR92VE
Journal Section Research Article
Authors

Muhammad Jamil This is me

Erich W. Streissler This is me

Robert M. Kunst This is me

Publication Date June 1, 2012
Published in Issue Year 2012 Volume: 2 Issue: 2

Cite

APA Jamil, M., Streissler, E. W., & Kunst, R. M. (2012). Exchange Rate Volatility and its Impact on Industrial Production, Before and After the Introduction of Common Currency in Europe. International Journal of Economics and Financial Issues, 2(2), 85-109.
AMA Jamil M, Streissler EW, Kunst RM. Exchange Rate Volatility and its Impact on Industrial Production, Before and After the Introduction of Common Currency in Europe. IJEFI. June 2012;2(2):85-109.
Chicago Jamil, Muhammad, Erich W. Streissler, and Robert M. Kunst. “Exchange Rate Volatility and Its Impact on Industrial Production, Before and After the Introduction of Common Currency in Europe”. International Journal of Economics and Financial Issues 2, no. 2 (June 2012): 85-109.
EndNote Jamil M, Streissler EW, Kunst RM (June 1, 2012) Exchange Rate Volatility and its Impact on Industrial Production, Before and After the Introduction of Common Currency in Europe. International Journal of Economics and Financial Issues 2 2 85–109.
IEEE M. Jamil, E. W. Streissler, and R. M. Kunst, “Exchange Rate Volatility and its Impact on Industrial Production, Before and After the Introduction of Common Currency in Europe”, IJEFI, vol. 2, no. 2, pp. 85–109, 2012.
ISNAD Jamil, Muhammad et al. “Exchange Rate Volatility and Its Impact on Industrial Production, Before and After the Introduction of Common Currency in Europe”. International Journal of Economics and Financial Issues 2/2 (June 2012), 85-109.
JAMA Jamil M, Streissler EW, Kunst RM. Exchange Rate Volatility and its Impact on Industrial Production, Before and After the Introduction of Common Currency in Europe. IJEFI. 2012;2:85–109.
MLA Jamil, Muhammad et al. “Exchange Rate Volatility and Its Impact on Industrial Production, Before and After the Introduction of Common Currency in Europe”. International Journal of Economics and Financial Issues, vol. 2, no. 2, 2012, pp. 85-109.
Vancouver Jamil M, Streissler EW, Kunst RM. Exchange Rate Volatility and its Impact on Industrial Production, Before and After the Introduction of Common Currency in Europe. IJEFI. 2012;2(2):85-109.