A Note on Nominal and Real Devaluation in Laos

In this article, we investigate whether or not nominal devaluation leads to real devaluation in Laos by using autoregressive-distributed lag (ARDL) bounds testing and the Granger causality test in a vector error correction model (VECM) framework. Our empirical evidence shows that nominal devaluation Granger causes real devaluation in the short run and the long run. This finding implies that nominal devaluation leads to real devaluation.

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Year of publication:	2015
Authors:	Kyophilavong, Phouphet ; Shahbaz, Muhammad ; Uddin, Gazi Salah
Published in:	Global Business Review. - International Management Institute. - Vol. 16.2015, 2, p. 236-243
Publisher:	International Management Institute
Subject:	Nominal devaluation \| real devaluation \| Laos

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011265806