All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Sovannroeun Samreth
 
''A Note on Short-Run and Long-Run Relationships between Parallel and Official Exchange Rates: The Case of Cambodia''
( 2010, Vol. 30 No.2 )
 
 
By employing an Autoregressive Distributed Lag (ARDL) approach to cointegration, this paper presents the results of a new empirical study on short-run and long-run relationships between the Cambodian parallel and the official exchange rates. Tests to confirm the stability of the estimated model are conducted. The causality relationships between the parallel and official exchange rates are also examined, by applying the Toda and Yamamoto (1995) approach. From the empirical results, we find that there exists a stable long-run relationship between the two exchange rates in Cambodia. Moreover, the causality tests provide the evidence of the mutual directions between them.
 
 
Keywords: Parallel Exchange Rate; Official Exchange Rate; Cambodia; ARDL
JEL: F3 - International Finance: General
C3 - Time-Series Models
 
Manuscript Received : Jan 05 2010 Manuscript Accepted : Apr 21 2010

  This abstract has been downloaded 301 times                The Full PDF of this paper has been downloaded 87746 times