Abstract
This paper studies the effects of foreign exchange reserves and real effective exchange rate on industrial output in Bangladesh. Quarterly data are used from 1981-1982 to 2013-2014. The standard ARDL procedure and VECM are applied. Both DF-GLS and Ng-Perron efficient tests exhibit non-stationarity of each variable in log-level with I (1) behavior. The ARDL estimates provide evidence of co-integration among the variables. The VECM estimates confirm convergence with moderate pace of adjustment toward long-run equilibrium. Short-run net interactive effect of foreign reserves on industrial output is weakly positive while the net effect of real effective exchange rate is negative.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
