NSU Research Contributions
Title : Could Changes in Black Market Exchange Rates be Expansionary in LDCs?
Authors : Mohsen Bahmani-Oskooee,Gour Goswami, Ilir Miteza
| Journal Title: Ecomomics Bulletin | Volume Number: 6 | Publication Year : 2008 | Issue Number: 13 |
| Index: scopus | Ranking: Q4 | ISSN: 15452921 | Publisher Name: Economics Bulletin |
| Pages : 1-9 | |||
| Funding Source : None |
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Direct Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Indirect Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Sustainable Development Sub Goals : Upgrade infrastructure and retrofit industries to make them sustainable |
| Impact statement: Many previous studies that sought to assess the contractionary or expansionary effects of depreciations or devaluations in less developed countries (LDCs) used official exchange rate data and concluded that devaluations are contractionary in LDCs. However, due to capital controls, many LDCs have a black market for foreign exchange. In this paper, when we use black-market exchange rates for 29 LDCs over the period 1975-1998 in a panel model, we find that devaluations are expansionary. Thus, for an effective exchange rate policy, the official and black market exchange rates should be unified | Collaboration: Partner University | Keywords: LDCs, Black Market Exchange Rates |