scholarly journals Analysis of the Relationship between Real Effective Exchange Rate, Common Equity and Return on Equity: Evidence from Turkey

2019 ◽  
pp. 319-332
Author(s):  
Esra N. Kılcı ◽  
Burcu Kıran Baygın
Keyword(s):  
Exchange Rate ◽  
Real Effective Exchange Rate ◽  
Return On Equity ◽  
Effective Exchange ◽  
Effective Exchange Rate ◽  
The Relationship

scholarly journals The Bank Sector Performance and Macroeconomics Environment: Empirical Evidence in Togo

2017 ◽  
Vol 9 (2) ◽  
pp. 180 ◽  
Author(s):  
Adama Combey ◽  
Apelete Togbenou
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Real Effective Exchange Rate ◽  
Domestic Product ◽  
Return On Assets ◽  
Gross Domestic Product Growth ◽  
Return On Equity ◽  
Real Gross Domestic Product ◽  
Effective Exchange ◽  
Effective Exchange Rate

This article investigates short-run and long-run relationship between three main macroeconomic indicators (gross domestic product growth, real effective exchange rate, and inflation) and banking sector profitability (measured by return on assets and return on equity) in Togo, from 2006 to 2015, by using Pool Mean Group estimator. Results show that, in the short-run, banks’ return on assets and return on equity are not related to macroeconomic variables. But banks’ return on assets is determined positively by bank capital to assets ratio and bank size while banks’ return on equity is affected negatively by bank capital to assets ratio. However, in the long-run, real gross domestic product growth and real effective exchange rate affect negatively and statistically significant banks’ return on assets, while inflation rate has no effect. Concerning bank’s return on equity, in the long-run, results suggest that real gross domestic product growth, real effective exchange rate, and inflation affect negatively bank’s return on equity. These results imply that to stabilize bank profitability and make Togolese banking sector more resilient, policymakers and banking sector managers must, among others, try to improve real gross domestic product growth, real effective exchange rate, and inflation volatility anticipation.

Relationship between Real Effective Exchange Rate and Labor Productivity: Empirical Evidence

2021 ◽  
Vol 1 (1) ◽  
pp. 21-28
Author(s):  
Joseph Angelo
Keyword(s):  
Exchange Rate ◽  
Labor Productivity ◽  
Real Effective Exchange Rate ◽  
Statistical Techniques ◽  
Organizational Productivity ◽  
Resource Quality ◽  
Effective Exchange ◽  
The Usa ◽  
Effective Exchange Rate ◽  
The Relationship

Labor productivity is one of the indicators that reveal a country’s economic development, human resource quality, availability of infrastructure and technology, among others. Improvement in organizational productivity is also dependent on labor productivity. The current study attempts to study the relationship between labor productivity and the Real Effective Exchange Rate in the selected countries. The sample included Australia, Brazil, Bulgaria, Canada, China, Iceland, Japan, Malaysia, South Africa, and the USA. With the aid of statistical techniques, the study found that productivity and exchange rate are correlated with varying degrees of strength and the nature of the relationship varies from country to country. The study concludes with important directions for future investigations.  

scholarly journals An empirical study of the real effective exchange rate and foreign direct investment in Vietnam

2020 ◽  
Vol 17 (4) ◽  
pp. 1-13
Author(s):  
Tram Thi Xuan Huong ◽  
My-Linh Thi Nguyen ◽  
Nguyen Thi Kim Lien
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Positive Impact ◽  
Real Effective Exchange Rate ◽  
The Real ◽  
Effective Exchange ◽  
The Exchange Rate ◽  
Effective Exchange Rate ◽  
The Relationship

Foreign direct investment (FDI) inflows to Vietnam have increased significantly in recent years. Theoretically, capital inflows will put pressure on the overvaluation of local currencies in countries, despite different exchange rate mechanisms. So, the problem facing the Vietnamese government is the need to examine the relationship between the exchange rate and FDI in order to develop effective policies. This study examined the relationship between the exchange rate and FDI in Vietnam in the period of 2005–2019 using the VAR (vector autoregression) model based on quarterly frequency data. The new points of this study are: (i) using the real effective exchange rate (REER) of the Vietnamese currency with 143 major trading partners of Vietnam; and (ii) adding two control variables into the VAR model to examine the relationship between the exchange rate and FDI in Vietnam – a case study for developing countries. The findings show that, firstly, there is a positive causal relationship between FDI and Vietnam’s real effective exchange rate. Secondly, trade openness has a positive impact on FDI and REER in Vietnam. Thirdly, economic growth has an impact on REER, but no statistically significant impact on FDI was found. The findings can provide useful information to help policymakers plan and make decisions on future policies and support further research studies.

scholarly journals Currency Depreciation, Trade Balance and Intra-Industry Trade Interactions in Turkey’s OECD Trade

2016 ◽  
Vol 8 (4) ◽  
pp. 8 ◽  
Author(s):  
Mehmet Demiral
Keyword(s):  
Exchange Rate ◽  
Trade Balance ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Adjustment Process ◽  
Industry Trade ◽  
Long Run ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

<p>This study re-examines the determinants of Turkey’s trade balance in its manufactures trade with 33 OECD-member countries for the short-run and the long-run. Unlike other studies, in the relationships we also control the moderating effects of the availability of import substitutes proxied by intra-industry trade. We analyze quarterly aggregated time-series data of the period spanning from 1998.QI to 2015.QIII, following the autoregressive distributed lag (ARDL) bounds testing approach to the cointegration and the error correction modeling. Estimation results reveal that real effective exchange rate, together with domestic and foreign incomes are still among the core determinants of Turkey’s trade balance in the manufacturing sectors. There is no significant impact of domestic final oil prices that also include all the taxes on gasoline. The trade balance depends on domestic income negatively and the aggregated income of the OECD countries positively. The finding that real depreciation of Turkish lira against to those of Turkey’s OECD trade partners improves trade balance in both the short-run and the long-run, indicates no evidence of J-curve adjustment process. Unsurprisingly, the intra-industry trade seems to be an important factor that moderates the elasticities of trade balance to its determinants, especially to real effective exchange rate and domestic income. Overall results underline the importance of import-substitution capability besides the export-oriented production to ease the longstanding large trade deficits for Turkey.</p><strong></strong>

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