THE FACTORS AFFECTING NOMINAL EXCHANGE RATE FOR DEVELOPING COUNTRIES: A PANEL DATA ANALYSIS

Year 2019, Volume: 11 Issue: 20, 41 - 49, 29.05.2019

Banu Demirhan Erdal Demirhan

https://doi.org/10.20990/kilisiibfakademik.538025

Abstract

This study
examines the factors determining nominal exchange rate in 77 developing
countries for the period of 2004-2016. Panel data regression model is
constructed in the econometric estimations. According to empirical results,
anti-inflationary policies are necessary to achieve lower nominal exchange rates
in developing countries. Economic growth stemming from higher capital formation
contributes to lower nominal exchange rates as well as implementing economic policies towards
increasing international reserves 

Keywords

Nominal Exchange Rate, Economic Growth

References

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