The Impact of Exchange Rate on Economic Growth – Case Studies of Countries in the Asean Region

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Mai Thi Phuong Thuy
Mai Thi Phuong Thuy
2
Pham Thi Ha An
Pham Thi Ha An
3
Nguyen Thanh Binh
Nguyen Thanh Binh
4
Ho Le Nguyet Cam
Ho Le Nguyet Cam

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GJMBR Volume 20 Issue B8

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The study reflects the impact of an effective multilateral exchange rate in the 1989-2018 period on the economic growth rate of 5 ASEAN countries, including Vietnam, Indonesia, Singapore, Philippines, and Malaysia. To estimate this model, the author uses the Fixed Effects and Random Effects panel data estimation method. Hausman test shows the model calculated using the Fixed Effects method is more suitable than the Random Effects method. In the estimation model, however, heteroskedasticity and autocorrelation came using the Fixed Effects method. Using Prais-Winsten (PCSE) process, the authors overcame the phenomenon. The final model shows that an improvement of 1% in the effective exchange rate would have a positive impact, growing the five countries’ economic growth rate by 16.2%.

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No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Mai Thi Phuong Thuy. 2020. \u201cThe Impact of Exchange Rate on Economic Growth – Case Studies of Countries in the Asean Region\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 20 (GJMBR Volume 20 Issue B8): .

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GJMBR Volume 20 Issue B8
Pg. 13- 20
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: E5, E52, E51
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v1.2

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July 24, 2020

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English

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The study reflects the impact of an effective multilateral exchange rate in the 1989-2018 period on the economic growth rate of 5 ASEAN countries, including Vietnam, Indonesia, Singapore, Philippines, and Malaysia. To estimate this model, the author uses the Fixed Effects and Random Effects panel data estimation method. Hausman test shows the model calculated using the Fixed Effects method is more suitable than the Random Effects method. In the estimation model, however, heteroskedasticity and autocorrelation came using the Fixed Effects method. Using Prais-Winsten (PCSE) process, the authors overcame the phenomenon. The final model shows that an improvement of 1% in the effective exchange rate would have a positive impact, growing the five countries’ economic growth rate by 16.2%.

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The Impact of Exchange Rate on Economic Growth – Case Studies of Countries in the Asean Region

Pham Thi Ha An
Pham Thi Ha An
Nguyen Thanh Binh
Nguyen Thanh Binh
Ho Le Nguyet Cam
Ho Le Nguyet Cam

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