Foreign Exchange Rate and the Hong Kong Economic Growth

2017 ◽  
Author(s):  
John Woods ◽  
Brian Hausler ◽  
Kevin Carter
Keyword(s):  
Economic Growth ◽  
Hong Kong ◽  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Rate

IMPACT OF FOREIGN TRADE ON ECONOMIC GROWTH IN NIGERIA

2021 ◽  
Vol 9 (1) ◽  
pp. 20-35
Author(s):  
Esiaka Chuka ◽  
◽  
Uwaleke Uche ◽  
Nwala Nneka ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Foreign Trade ◽  
Foreign Exchange ◽  
Secondary Data ◽  
Foreign Exchange Rate ◽  
Distributed Lag ◽  
Oil Revenue ◽  
Ex Post ◽  
The Impact

This study investigated the impact of foreign trade on the economic growth of Nigeria for the period 1981–2018. Economists hold two contrasting opinions on the effect of foreign trade on a nation’s economy. While the positive-sum game school of thought holds the view that, when nations engage in foreign trade, there are bound to be mutual gains as each country’s utility is expanded, the negative-sum game school of thought holds the view that trade relations amongst nations of the world benefit one economy at the expense of the other. This study was embarked upon to ascertain which of these two conflicting opinions applies to Nigeria. Accordingly, the objective of the study was to determine the impact of foreign trade proxy by oil revenue, non-oil revenue, and foreign exchange rate on Nigeria’s economic growth proxy by gross domestic product growth rate. The study adopted the ex post facto research design and secondary data were obtained from the Central Bank of Nigeria Statistical Bulletin. The study employed the Autoregressive Distributed Lag Model to evaluate the effect of foreign trade on economic growth in Nigeria. Findings suggest that oil revenue, non-oil revenue, and foreign exchange rate have a significant impact on economic growth in Nigeria. The study recommended that Nigeria’s oil revenue be heavily invested in non-oil revenue-earning productive sectors such as agriculture and mining to create the desired multiplier effect on the economy.

scholarly journals Influence of Exchange Rate on the Economic Growth in the Turkish Economy

2020 ◽  
Vol 11 (1) ◽  
pp. 21-34
Author(s):  
Özcan Karahan
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Foreign Exchange ◽  
Inflation Targeting ◽  
Foreign Exchange Rate ◽  
Policy Implications ◽  
Causality Test ◽  
Input Structure ◽  
Johansen Cointegration Test

The traditional view asserts that there is a positive relationship between the foreign exchange rate and economic growth. So much so that an increase in foreign exchange rates enhances the net export volume and thus positively affects economic growth due to the increasing total demand. However, structural economists argue that there is an inverse relationship between the exchange rate and economic growth. Especially in developing countries, the input structure of production depends on imported capital and intermediate goods, so an increase in exchange rates makes import production inputs more expensive and thus negatively affects economic growth. Turkey, leaving foreign exchange rate free float since 2002, has implemented the Inflation Targeting (IT) regime as the monetary policy. Therefore, Turkey has a real experience to analyse the role of exchange rate changes on economic growth. Accordingly, in our study, using the quarterly data between 2002-Q1 and 2019-Q1, the relationship between exchange rate and economic growth was examined by employing Johansen cointegration test, Granger causality test and Innovation Accounting Techniques. Empirical findings suggest that there is a negative causal relationship between exchange rates and economic growth, as claimed by structuralist economists. In terms of policy implications, it can be argued that, even under the inflation targeting regime in Turkey, both price and exchange rate stability should be provided together.

An Empirical Analysis of Foreign Exchange Exposure of CNX 100 Companies

GIS Business ◽  
2017 ◽  
Vol 12 (5) ◽  
pp. 1-9 ◽  
Author(s):  
Sriram Mahadevan
Keyword(s):  
Exchange Rate ◽  
Stock Returns ◽  
Foreign Exchange ◽  
Foreign Exchange Rate ◽  
Future Research ◽  
Export Ratio ◽  
Exchange Rate Exposure ◽  
Ratio Size ◽  
Foreign Exchange Exposure ◽  
Exchange Rate Changes

The present study has empirically examined the level of foreign exchange exposure and its determinants of CNX 100 companies. For the purpose of study, the relationship between exchange rate changes and stock returns for a sample of 82 companies was determined for the period April 2011-March 2016. The study finds that 49% of the sample companies had significant positive foreign exchange rate exposure and the found that the companies could be exporters or net importers. To explore factors determining foreign exchange rate exposure, variables such as export ratio, import ratio, size of a company, hedging activities were regressed against the exchange exposure and the study found that none of the factors was influencing the exchange rate exposure. The study concludes that the reasons for insignificant influence of the variables could be the natural hedging practices of companies, offsetting of exports and imports and heterogeneous of the sample size. The study offers few directions for future research in this area.

Interest Rate, Foreign Exchange Rate, and Stock Market Development in Nigeria

2018 ◽  
Vol 9 (3) ◽  
pp. 247-253 ◽  
Author(s):  
Edward Adedoyin Adebowale ◽  
Akindele Iyiola Akosile
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Foreign Exchange ◽  
The United States ◽  
Ordinary Least Squares ◽  
Foreign Exchange Rate ◽  
Market Development ◽  
National Bureau ◽  
Stock Market Development

This research investigated the effect of interest rate and foreign exchange rate on stock market development in Nigeria. This research was centered on two research problems. First, it was whether interest rate had a significant effect on stock market development in Nigeria. Second, it was whether foreign exchange rate had a significant impact on stock market development in Nigeria. The scope of the research covered the period from 1981 to 2017. Data for this period were chosen because it covered pre and post-liberalization periods of Nigerian financial system. This research made use of ex post facto research design. Secondary data were sourced from Nigerian Stock Exchange reports, Central Bank of Nigeria statistical bulletins, and National Bureau of Statistics publications. Data were collected on Stock Market Capitalization (SMC), Prime Lending Rate (PLR) and Real Exchange Rate (RER) (Nigerian Naira in relation to American Dollars of the United States). Data analysis was carried out with Ordinary Least Squares (OLS) and Cochrane-Orcutt Iterative techniques. The findings reveal that interest rate has a significant negative effect, and foreign exchange rate has a significant positive effect on Nigerian stock market development during the period covered. It is suggested that monetary authorities should strive to formulate policies that will make interest and foreign exchange rates stable, competitive, and at a level that will stimulate the investment of funds in the stock market.

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