Are Devaluations Expansionary in Laos?
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › Not applicable › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 72-83 |
| Journal / Publication | Global Business Review |
| Volume | 20 |
| Issue number | 1 |
| Early online date | 21 Nov 2018 |
| Publication status | Published - 1 Feb 2019 |
Link(s)
Abstract
This study investigates whether currency devaluation is expansionary for Laos. We combine cointegration and vector error correction method (VECM) Granger causality analysis to examine long-run and causal relationships among selected macroeconomic variables. Our results confirm the presence of cointegration among the variables and support expansionary effects of currency devaluation on economic growth of Laos. Government spending increases economic growth but money supply decreases the growth. World income is inversely linked with Laos’ economic growth. Our evidence supports the devaluation-led growth hypothesis.
Research Area(s)
- Devaluation, Laos, VECM Granger causality
Citation Format(s)
Are Devaluations Expansionary in Laos? / Kyophilavong, Phouphet; Shahbaz, Muhammad; Lamphayphan, Thongphet; Kim, Byoungki; Wong, Michael C. S.
In: Global Business Review, Vol. 20, No. 1, 01.02.2019, p. 72-83.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › Not applicable › peer-review
