The dynamics of Thailand's real exchange rate

This study examines the fundamental determinants of the real exchange rate in Thailand during the period of 1976-2006, using the Bounds testing approach suggested by Pesaran et al. (2001). Three main fundamentals are used to identify the RER, namely, the productivity differentials (proxied by GDP pe...

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Main Authors: Abdul Hamid, Baharom, Habibullah, Muzafar Shah, Mohamed, Azali, Chow, Li Shen
Format: Article
Language:English
Published: Institute of Interdisciplinary Business Research 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22830/
http://psasir.upm.edu.my/id/eprint/22830/1/The%20dynamics%20of%20Thailand.pdf
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author Abdul Hamid, Baharom
Habibullah, Muzafar Shah
Mohamed, Azali
Chow, Li Shen
author_facet Abdul Hamid, Baharom
Habibullah, Muzafar Shah
Mohamed, Azali
Chow, Li Shen
author_sort Abdul Hamid, Baharom
building UPM Institutional Repository
collection Online Access
description This study examines the fundamental determinants of the real exchange rate in Thailand during the period of 1976-2006, using the Bounds testing approach suggested by Pesaran et al. (2001). Three main fundamentals are used to identify the RER, namely, the productivity differentials (proxied by GDP per capita), the net foreign assets position (proxied by the current account balance, CAB), and the real interest rate differential (RIR). The empirical results demonstrate stable long run relationship between the real exchange rate (RER) and GDP per capita (GDPPC), real interest rate (RIR) and current account balance (CAB).
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spelling upm-228302015-10-02T02:51:08Z http://psasir.upm.edu.my/id/eprint/22830/ The dynamics of Thailand's real exchange rate Abdul Hamid, Baharom Habibullah, Muzafar Shah Mohamed, Azali Chow, Li Shen This study examines the fundamental determinants of the real exchange rate in Thailand during the period of 1976-2006, using the Bounds testing approach suggested by Pesaran et al. (2001). Three main fundamentals are used to identify the RER, namely, the productivity differentials (proxied by GDP per capita), the net foreign assets position (proxied by the current account balance, CAB), and the real interest rate differential (RIR). The empirical results demonstrate stable long run relationship between the real exchange rate (RER) and GDP per capita (GDPPC), real interest rate (RIR) and current account balance (CAB). Institute of Interdisciplinary Business Research 2011-03 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22830/1/The%20dynamics%20of%20Thailand.pdf Abdul Hamid, Baharom and Habibullah, Muzafar Shah and Mohamed, Azali and Chow, Li Shen (2011) The dynamics of Thailand's real exchange rate. Interdisciplinary Journal of Contemporary Research in Business, 2 (11). pp. 23-31. ISSN 2073-7122
spellingShingle Abdul Hamid, Baharom
Habibullah, Muzafar Shah
Mohamed, Azali
Chow, Li Shen
The dynamics of Thailand's real exchange rate
title The dynamics of Thailand's real exchange rate
title_full The dynamics of Thailand's real exchange rate
title_fullStr The dynamics of Thailand's real exchange rate
title_full_unstemmed The dynamics of Thailand's real exchange rate
title_short The dynamics of Thailand's real exchange rate
title_sort dynamics of thailand's real exchange rate
url http://psasir.upm.edu.my/id/eprint/22830/
http://psasir.upm.edu.my/id/eprint/22830/1/The%20dynamics%20of%20Thailand.pdf