TAILIEUCHUNG - Real effective exchange rate: A transmission channel for the impact of economic growth on exports in Vietnam

This article analyzes the role of real effective exchange rate as a transmission channel for the impact of economic growth on Vietnam’s exports. Using quarterly data for the period of 1994–2013, the analysis results show that economic growth, real effective exchange rate (REER), and exports tend to fluctuate in the same direction. | Nguyen Quang Hiep & Nguyen Thi Nha / Journal of Economic Development 23(1) 121-136 121 Real Effective Exchange Rate: A Transmission Channel for the Impact of Economic Growth on Exports in Vietnam NGUYEN QUANG HIEP Hung Yen Industrial College – nqhsta@ NGUYEN THI NHA Hung Yen Industrial College – nthsta@ ARTICLE INFO ABSTRACT Article history: This article analyzes the role of real effective exchange rate as a transmission channel for the impact of economic growth on Vietnam’s exports. Using quarterly data for the period of 1994–2013, the analysis results show that economic growth, real effective exchange rate (REER), and exports tend to fluctuate in the same direction. Furthermore, according to the results of the VAR model, economic growth impacts on and promotes export growth through increased productivity that improves the competitive advantage of products. The exchange rate, as an important channel, allows for a positive impact of economic growth on exports in Vietnam. Received: Jan. 21. 2015 Received in revised form: May. 07. 2015 Accepted: Dec. 30 2015 Keywords: Verdoorn’s Law. economic growth, real effective exchange rate, exports. 122 Nguyen Quang Hiep & Nguyen Thi Nha / Journal of Economic Development 23(1) 121-136 1. Introduction Exchange rate, in its close relation to macroeconomic outcomes, is considered an important factor to affect the competitiveness of goods in foreign trade as well as other economic variables. The fluctuation in exchange rate may alter the relative prices of goods/services through domestic and foreign currencies and thus significantly affect import-export activities. In reality, an increase in effective exchange rate index leads to VND’s real-value depreciation and higher international trade competitiveness, which contributes to export improvement. Conversely, the effective exchange rate index, in its decreasing trend, causes VND’s appreciation, weakened competitiveness, and thereby reducing export growth

• Kinh tế học
• Verdoorn’s Law
• Economic growth
• Real effective exchange rate
• Economic growth on Vietnam’s exports
• Exchange rate
• Interest rate
• Stock return
• Vietnam stock market
• Interest rate on stock return
• Impact of exchange rate
• Trade balance
• Floating exchange rate policy
• Exchange rate volatility
• Vector autoregression
• Exchange policy
• Exchange rate regime
• Exchange control regime
• Moroccan economy
• Exchange regulation in Morocco
• International financial management
• Quản lý tài chính quốc tế
• Lecture International financial management
• Exchange rate determination
• Exchange rate equilibrium
• Exchange rates
• Lecture International Economics
• Bài giảng Kinh tế quốc tế
• Exchange rate systems
• Currency crises
• Official exchange rate
• Exchange stabilization fund
• International Finance
• Lecture International finance
• Tài chính quốc tế
• Bài giảng Tài chính quốc tế
• Exchange rate forecasting
• Sign restriction
• Monetary policy
• Fixed exchange rate
• Monetary setting
• ASEAN income gap
• Optimal exchange rate
• Foreign demand shock
• Income gap
• Panel SVAR
• Summary of PHD thesis
• The impact of CNY USD exchange rate
• Vietnamese macroeconomic factors
• Vietnamese economic objectives
• The exchange rate policy management
• The impact of USD
• Order imbalance
• NTD USD exchange rate
• Causality relation
• Taiwan exchange rate market
• Imbalance based trading strategies
• Firm level analysis
• Exchange rate exposure of Indian firms
• Exchange rate exposure
• Indian firms
• Stock returns
• Exchange rate regimes
• Financial crises
• Banking crises
• Logit model
• Exchange rate politics
• Time series
• Monetary policy on the exchange rate
• Sign restriction approaches
• RMB exchange rate expectations
• China's housing price fluctuations
• FAVAR model
• Degree of reversal intervention
• RMB exchange rate expectations explain
• Exchange rate on inflation and economic growth in Vietnam
• Inflation and economic growth in Vietnam
• Bilateral real exchange rate
• Consumer price index
• The two exogenous variables
• Oil price
• Exchange rate affect non oil GDP
• Oil rich country
• Non oil gross domestic product
• Fully modified ordinary smallest square approach
• Cointegration analysis
• Intra regional trade
• Panel gravity model approach
• Exports in COMESA
• Exchange rate volatility on exports
• Summary of Economics Ph d’s thesis
• Summary of Ph d’s thesis
• Exchange rate exposure research
• Market data
• Background on exchange rate exposure
• Models indicate
• Currency depreciation
• Exchange rate movements
• Oil price shock
• Real exchange rate
• Exchange rate in Bangladesh
• Nexus between oil price shock
• Oil plays a crucial role
• International trade
• Econometric models
• Integrating properties
• Pegged exchange rate system
• Long run equilibrium
• Exchange Rate and Foreign Exchange Reserve
• Official website of Reserve Bank of India
• Software E – Views
• Cointegration Test and Unit Root Test
• Forward foreign exchange rate
• Spot foreign exchange rate
• Rational expectations
• Forward discount bias
• Forward rate biasedness
• Equilibrium exchange rate