THE FACTORS AFFECTING NOMINAL EXCHANGE RATE FOR DEVELOPING COUNTRIES: A PANEL DATA ANALYSIS

Authors : Banu DEMİRHAN, Erdal DEMİRHAN

Pages : 41-49

Doi:10.20990/kilisiibfakademik.538025

View : 19 | Download : 11

Publication Date : 2019-05-29

Article Type : Research Paper

Abstract :This study examines the factors determining nominal exchange rate in 77 developing countries for the period of 2004-2016. Panel data regression model is constructed in the econometric estimations. According to empirical results, anti-inflationary policies are necessary to achieve lower nominal exchange rates in developing countries. Economic growth stemming from higher capital formation contributes to lower nominal exchange rates as well as implementing economic policies towards increasing international reserves 
Keywords : Nominal Exchange Rate, Economic Growth