The impact of exchange rate on economic growth under different exchange rate regimes (in selected countries developed and developing)
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Abstract:
This paper examines the role of different exchange rate regimes on relationship between exchange rate volatility and economic growth. To investigate this relationship, information of 53 countries with floating and fixed exchange rate regimes in the period of 1987-2016 are considered. GARCH technique is used to estimate exchange rate volatility and Difference GMM technique for estimating the model. The results indicate that the exchange rate volatility has a negative and significant effect on the economic growth of countries and negative impact of exchange rate volatility on economic growth is weaker in floating exchange rate regime countries compared with fix exchange rate regime countries.
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Journal title
volume 8 issue 29
pages 111- 134
publication date 2020-06
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