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DC Field | Value | Language |
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dc.date.accessioned | 2020-06-05T12:26:59Z | - |
dc.date.available | 2020-06-05T12:26:59Z | - |
dc.date.issued | 2019 | - |
dc.identifier.citation | Mifsud, K.C. (2019). The link between governance and real effective exchange rates: a Balassa-Samuelson model (Master's dissertation). | en_GB |
dc.identifier.uri | https://www.um.edu.mt/library/oar/handle/123456789/57433 | - |
dc.description | M.SC.ECONOMICS | en_GB |
dc.description.abstract | This paper examines the relationship between Real Effective Exchange Rates and measures of governance provided by the World Governance Index database through the Balassa-Samuelson model. An additional control variable of terms of trade was added to partly capture country-specific effects within the dataset. Through both static and dynamic panel estimation techniques, the model was applied for a sample of 151 countries across the period starting from 1996 till 2017. The inclusion of such models was made to address any potential biases associated with panel data estimation. Static model results suggest strong supporting evidence toward the presence of the B-S effects, revealing general wage increases factored in higher prices of tradable goods that follow relative increases productivity of the tradables sector. Dynamic panel models find little supporting evidence toward the effect for the entire sample, mainly reporting a negative yet significant coefficient for the first lag of the relative productivity proxy, contradicting the theory, and an insignificant coefficient for the lag of the dependent variable. However, following segmentation of data into developing and developed countries, the study strongly substantiates the B-S hypothesis for all categories of developing countries. Furthermore, all six governance indicators were found to be statistically significant for different model specifications, having a mixture of effects on the dependent variable, suggesting the importance given to the determination of exchange rates through high quality management of governance. | en_GB |
dc.language.iso | en | en_GB |
dc.rights | info:eu-repo/semantics/restrictedAccess | en_GB |
dc.subject | Foreign exchange rates | en_GB |
dc.subject | Foreign exchange rates -- Econometric models | en_GB |
dc.subject | Political indicators | en_GB |
dc.subject | Economic indicators | en_GB |
dc.title | The link between governance and real effective exchange rates : a Balassa-Samuelson model | en_GB |
dc.type | masterThesis | en_GB |
dc.rights.holder | The copyright of this work belongs to the author(s)/publisher. The rights of this work are as defined by the appropriate Copyright Legislation or as modified by any successive legislation. Users may access this work and can make use of the information contained in accordance with the Copyright Legislation provided that the author must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the prior permission of the copyright holder. | en_GB |
dc.publisher.institution | University of Malta | en_GB |
dc.publisher.department | Faculty of Economics, Management and Accountancy. Department of Economics | en_GB |
dc.description.reviewed | N/A | en_GB |
dc.contributor.creator | Mifsud, Kimberley Charlie | - |
Appears in Collections: | Dissertations - FacEma - 2019 Dissertations - FacEMAEco - 2019 |
Files in This Item:
File | Description | Size | Format | |
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19MSCEC024.pdf Restricted Access | 2.44 MB | Adobe PDF | View/Open Request a copy |
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