TY  - JOUR
TT  - Causal Effects and Dynamic Relationship between Exchange Rate Volatility and Economic Development in Liberia
AU  - Gbatu, Abimelech Paye
AU  - Wang, Zhen
AU  - Jr., Presley K. Wesseh
AU  - Tutdel, Isaac Yak Repha
PY  - 2017
DA  - December
JF  - International Journal of Economics and Financial Issues
JO  - IJEFI
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4138
SP  - 119
EP  - 131
VL  - 7
IS  - 4
KW  - Economic growth
KW  - exchange rate volatility
KW  - Liberia
KW  - unrestricted VAR model
N2  - Studies envisioned to inform on major policy issues are paramount for Liberia’s economic recovery. Therefore, we employ an unrestricted vector autoregressive model to analyze the dynamic associations between exchange rate volatility (ERV) and Liberia’s real gross domestic product (RGDP). The empirical results show no significant relationship between ERV and Liberia’s RGDP in the short-run, but variance decomposition analysis reveals that innovations to Liberia’s RGDP lead to fluctuations in ERV in the long-run. Hence, we recommend that Liberia’s policymakers should exert stronger monetary policy control to ensure the existence of single currency regime in the long-run. Also, technological innovation is required to boost domestic production in order to offset the negative effect of ERV on trade.
UR  - https://dergipark.org.tr/tr/pub/ijefi/issue//353523
L1  - https://dergipark.org.tr/tr/download/article-file/364549
ER  -