Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 30, 2016 erstellt
Description:
The economic development of developing countries has been associated with their exports, and the evidence suggests that exchange rates influence the exports. We used the panel data to investigate potential Granger causality among the GDP, exports and exchange rates in Asian Countries over the period 1970-2009. We found that the exchange rate and exports nexus holds for Export-led Growth (ELG) and Growth-led Exports (GLE) hypotheses in the long and short run. We used the Wald test under VECM with all necessary specifications tests to identify the possible nexus of our variables. Additionally, we applied the Generalized Method of Moment (GMM) with control variables. The results imply that an undervalued currency enhances exports and a strong currency has a significant impact on economic development. Our results suggest that a timely and balanced policy is very import for the improvement of exchange rates, exports and economic growth nexus in the long term