Relationship between Real Effective Exchange Rate and Trade Balance in Nepal

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dc.contributor.authorGautam, Sakila
dc.date.accessioned2022-05-04T09:14:33Z
dc.date.available2022-05-04T09:14:33Z
dc.date.issued2021
dc.description.abstractThis study investigates the relationship between real effective exchange rate and trade balance in the context of Nepal using the Engle-Granger cointegration test and Error correction model based on annual data from 1979 to 2019 and suggests that the variables are cointegrated and shows that real effective exchange rate and real GDP have a significant positive role in increasing trade deficit in the long-run but remittance has been found to have negative impact. The result of the Error Correction Model further indicates that in the short-run, the real effective exchange rate and the real gross domestic product have a positive effect but, the remittance has a negative and significant effect on the trade deficit. The Error correction term ECM(-1) being negative and significant indicates that the variables get converged into long-run equilibrium.en_US
dc.identifier.urihttps://hdl.handle.net/20.500.14540/10069
dc.language.isoen_USen_US
dc.publisherDepartment of Economicsen_US
dc.subjectTrade balanceen_US
dc.subjectReal exchange rateen_US
dc.subjectCo-integrationen_US
dc.subjectECMen_US
dc.titleRelationship between Real Effective Exchange Rate and Trade Balance in Nepalen_US
dc.typeThesisen_US
local.academic.levelMastersen_US
local.institute.titleCentral Department of Economicsen_US
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