International Conference on Eurasian Economies
29-31 August 2016 – Kaposvár, HUNGARY
Paper detail
Paper ID : 1503
Status : Paper published
Language : Turkish
Topic : Macroeconomics
Presenter: Asst. Prof. Dr. Zamira Oskonbaeva
Session : 3D Finans III
The Impact of Exchange Rate on Output: Evidence from Transition Countries
Döviz Kurunun Çıktı Üzerindeki Etkisi: Geçiş Ülkeleri Örneği
- Prof. Dr. Ebru Çağlayan Akay (Marmara University, Türkiye)
- Asst. Prof. Dr. Raziya Abdiyeva (Kyrgyz-Turkish Manas University, Kyrgyzstan)
- Asst. Prof. Dr. Zamira Oskonbaeva (Kyrgyz-Turkish Manas University, Kyrgyzstan)
Abstract
This study investigates the impact of exchange rate on aggregate output for a group of 10 transition economies using panel simultaneous equation model. The model is estimated by generalized two-stage least squares method. The annual data used in the study cover the period from 1998 to 2014 for selected transition countries which are: Azerbaijan, Kazakhstan, Kyrgyzstan, Belarus, Georgia, Moldova, Russia, Tajikistan, Ukraine and Latvia. The result of the study indicates that there is a relationship between exchange rate and macroeconomic variables under consideration. It can be concluded that output effect of exchange rate changes is contractionary in the first year. In the second year this impact is completely reversed. Thus, the impact of exchange rate on output is neutral in the long run. The findings of the study will provide useful information to researchers and policymakers focusing on exchange rate issues in transition countries.
JEL codes: C33, F31, O23
Çağlayan Akay, Ebru, Abdiyeva, Raziya, Oskonbaeva, Zamira (2016). "The Impact of Exchange Rate on Output: Evidence from Transition Countries" in Proceedings of International Conference of Eurasian Economies 2016, pp.652-657, Kaposvár, HUNGARY.
DOI: https://doi.org/10.36880/C07.01503
