Demographic transition and the real exchange rate in Australia: An empirical investigation
This article utilizes the empirical findings that age structure of the population affects saving, investment and capital flow and hypothesizes that age structure influences the real exchange rate. Based on this link, an empirical model is specified for Australia and estimated with annual data for th...
| Main Authors: | , , |
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| Format: | Journal Article |
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Routledge
2015
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| Online Access: | http://hdl.handle.net/20.500.11937/9006 |
| _version_ | 1848745825820213248 |
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| author | Hassan, K. Salim, Ruhul Bloch, Harry |
| author_facet | Hassan, K. Salim, Ruhul Bloch, Harry |
| author_sort | Hassan, K. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This article utilizes the empirical findings that age structure of the population affects saving, investment and capital flow and hypothesizes that age structure influences the real exchange rate. Based on this link, an empirical model is specified for Australia and estimated with annual data for the period 1970–2011. An autoregressive distributed lag model of cointegration indicates that Australia's real exchange rate is cointegrated with its productivity differential and the relative share of young dependents (0–14 years) in the population. Long-run estimates show that young cohort has an appreciating influence on the real exchange rate. Also, the short-run adjustment is substantial, with more than 65% of the disequilibrium corrected in a year. |
| first_indexed | 2025-11-14T06:23:31Z |
| format | Journal Article |
| id | curtin-20.500.11937-9006 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:23:31Z |
| publishDate | 2015 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-90062017-09-13T14:49:27Z Demographic transition and the real exchange rate in Australia: An empirical investigation Hassan, K. Salim, Ruhul Bloch, Harry life cycle hypothesis real exchange rate demographic transition saving ARDL model This article utilizes the empirical findings that age structure of the population affects saving, investment and capital flow and hypothesizes that age structure influences the real exchange rate. Based on this link, an empirical model is specified for Australia and estimated with annual data for the period 1970–2011. An autoregressive distributed lag model of cointegration indicates that Australia's real exchange rate is cointegrated with its productivity differential and the relative share of young dependents (0–14 years) in the population. Long-run estimates show that young cohort has an appreciating influence on the real exchange rate. Also, the short-run adjustment is substantial, with more than 65% of the disequilibrium corrected in a year. 2015 Journal Article http://hdl.handle.net/20.500.11937/9006 10.1080/00779954.2013.851016 Routledge fulltext |
| spellingShingle | life cycle hypothesis real exchange rate demographic transition saving ARDL model Hassan, K. Salim, Ruhul Bloch, Harry Demographic transition and the real exchange rate in Australia: An empirical investigation |
| title | Demographic transition and the real exchange rate in Australia: An empirical investigation |
| title_full | Demographic transition and the real exchange rate in Australia: An empirical investigation |
| title_fullStr | Demographic transition and the real exchange rate in Australia: An empirical investigation |
| title_full_unstemmed | Demographic transition and the real exchange rate in Australia: An empirical investigation |
| title_short | Demographic transition and the real exchange rate in Australia: An empirical investigation |
| title_sort | demographic transition and the real exchange rate in australia: an empirical investigation |
| topic | life cycle hypothesis real exchange rate demographic transition saving ARDL model |
| url | http://hdl.handle.net/20.500.11937/9006 |