The Impact of Exchange Rate on Economic Growth â€“ Case Studies of Countries in the Asean Region

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

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

Pham Thi Ha An *

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Nguyen Thanh Binh

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Ho Le Nguyet Cam

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

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Abstract

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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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Pham An, Nguyen Binh, Ho Cam. 2020. "The Impact of Exchange Rate on Economic Growth – Case Studies of Countries in the Asean Region". Global Journal of Management and Business Research, 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

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-B Classification JEL Code: E5

E52

E51

Submission ReceivedNovember 7, 2020
Peer Review Double Blind
Handling Editor
Accepted December 3, 2020
Published December 15, 2020

Version of record

v1.2

Issue date

July 24, 2020

Language

English

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