Open AccessMeasuring the relationship between the balance of payments and the exchange rate - A case study of a group of Arab countries during the period 2000/2016-
Author(s) -
Abd Elouahid SERARMA,
Newfel BAALOUL
Publication year - 2018
Publication title -
journal of finance and corporate governance
Language(s) - English
Resource type - Journals
eISSN - 2602-5655
pISSN - 2661-7501
DOI - 10.54960/jfcg.v2i2.24
Subject(s) - balance of payments , exchange rate , economics , current account , balance (ability) , panel data , variable (mathematics) , deference , empirical research , variables , econometrics , monetary economics , statistics , psychology , mathematics , mathematical analysis , social psychology , neuroscience
The Objective of this study is to examine the effect of exchange rate system on the balance of payments, with a case study of a group of Arab countries. First we shed light on the most important theoretical and empirical studies of exchange rate systems and their macroeconomics effects in one hand. In the other hand we study a case of six oil exporting Arab countries. To achieve this purpose we adopted a panel data and run an econometric model to examine the relationships between the variables during the period 2000 to 2016. The study concluded that there is a significant positive correlation between the exchange rate as an independent variable and the balance of payments as a dependent variable, and there is no deference in the effects of the exchange system in the study of six Arab economies.