Dynamics of Relationship Between Macroeconomic Fundamentals and Exchange Rate: A Comparison of Advanced and Least Developed Countries

The exploration of relationship between macroeconomic fundamentals and exchange rate is needed in the perspective economic structure economies. focus current study to inquire dynamics behavior response for advanced least developed countries. Pooled Mean Group regression based on panel ARDL Panel Granger Causality Test are employed annual data sets time period 1995-2015. results evidence a strong volatility countries moderate level has been observed entirely governed by selected set both group validate fundamental models determination as indicators play an important role well level. It may be concluded that sensitive