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Long Run Tendencies and Short Run Adjustments Between Official and Black Market Exchange Rates in MENA Countries

Year 2014, Volume: 4 Issue: 3, 494 - 500, 01.09.2014

Ferit Kula , Alper Aslan Ilhan Ozturk

Abstract

This study makes an attempt to examine the long run relationship between the official and black market exchange rates using monthly data for a sample of 13 Middle East and Northern African (MENA) countries from 1970 to 1998. Using the Pool Mean Group framework, the article provides evidence on proportional long run relationship between black and official market exchange rates in sample countries. The positive common long run official exchange rates (OEX) elasticity is statistically significant and slightly greater than one. The hypothesis of portfolio balance model is confirmed, implying that there exists a proportional long run equilibrium relationship between official exchange rates and black market exchange rates. However, the short run dynamics remain heterogeneous across countries.

Keywords

Black market exchange rate official exchange rates Panel data Panel cointegration MENA countries

Year 2014, Volume: 4 Issue: 3, 494 - 500, 01.09.2014

Ferit Kula , Alper Aslan Ilhan Ozturk

Abstract

There are 0 citations in total.

Details

Other ID JA62HT26HH
Journal Section Research Article
Authors

Ferit Kula

Alper Aslan This is me

Ilhan Ozturk This is me

Publication Date September 1, 2014
Published in Issue Year 2014 Volume: 4 Issue: 3

Cite

APA Kula, F., Aslan, A., & Ozturk, I. (2014). Long Run Tendencies and Short Run Adjustments Between Official and Black Market Exchange Rates in MENA Countries. International Journal of Economics and Financial Issues, 4(3), 494-500.
AMA Kula F, Aslan A, Ozturk I. Long Run Tendencies and Short Run Adjustments Between Official and Black Market Exchange Rates in MENA Countries. IJEFI. September 2014;4(3):494-500.
Chicago Kula, Ferit, Alper Aslan, and Ilhan Ozturk. “Long Run Tendencies and Short Run Adjustments Between Official and Black Market Exchange Rates in MENA Countries”. International Journal of Economics and Financial Issues 4, no. 3 (September 2014): 494-500.
EndNote Kula F, Aslan A, Ozturk I (September 1, 2014) Long Run Tendencies and Short Run Adjustments Between Official and Black Market Exchange Rates in MENA Countries. International Journal of Economics and Financial Issues 4 3 494–500.
IEEE F. Kula, A. Aslan, and I. Ozturk, “Long Run Tendencies and Short Run Adjustments Between Official and Black Market Exchange Rates in MENA Countries”, IJEFI, vol. 4, no. 3, pp. 494–500, 2014.
ISNAD Kula, Ferit et al. “Long Run Tendencies and Short Run Adjustments Between Official and Black Market Exchange Rates in MENA Countries”. International Journal of Economics and Financial Issues 4/3 (September 2014), 494-500.
JAMA Kula F, Aslan A, Ozturk I. Long Run Tendencies and Short Run Adjustments Between Official and Black Market Exchange Rates in MENA Countries. IJEFI. 2014;4:494–500.
MLA Kula, Ferit et al. “Long Run Tendencies and Short Run Adjustments Between Official and Black Market Exchange Rates in MENA Countries”. International Journal of Economics and Financial Issues, vol. 4, no. 3, 2014, pp. 494-00.
Vancouver Kula F, Aslan A, Ozturk I. Long Run Tendencies and Short Run Adjustments Between Official and Black Market Exchange Rates in MENA Countries. IJEFI. 2014;4(3):494-500.