Real exchange rates, financial market imperfections and exports: The case of 5 ASEAN economies for the period 1998 to 2008

Date of Publication

2010

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Neriza M. Delfino

Defense Panel Chair

Ruben Carlo O. Asuncion

Defense Panel Member

Madeleine Balane
Robert Dan Roces

Abstract/Summary

Do financial market imperfections play a role between the relationship of real exchange rates and exports? We addressed this problem by utilizing a dataset which included five ASEAN economies, namely Indonesia, Malaysia, Philippines, Singapore and Thailand for the years 1998 to 2008. Employing panel data estimations on an augmented gravity model, we examined if real exchange rates and its interactions with financial market imperfections (credit constraints and foreign currency borrowing) are forms of trade resistance. We found out that (1) generally, the traditional view on real exchange rate effect holds in the ASEAN-5 economies (2) financial market imperfections distort positive effect of real exchnage rates by reducing it and, (3) modern view on real exchange rates effect may hold if the country has a sufficiently high level of financial market imperfection. Based from these results, we formulated important implications of our study for policymakers and for the academe.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17233

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

132 leaves : illustrations

Keywords

Foreign exchange rates--Southest Asia

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