International Congress on Eurasian Economies

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

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, Abdieva, Razia, 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

Full paper in PDF format.

Session 3D: Finans III

Eurasian Economists Association Istanbul Beykent University Kaposvár University Kyrgyz-Turkish Manas University Turkish-Hungarian Businessmen Association TIKA