A Note on Nominal and Real Devaluation in Laos

In this paper, we investigate whether or not nominal devaluation leads to real devaluation in Laos by using the ARDL bounds testing and the Granger causality test in a VECM framework. Our empirical evidence shows that nominal devaluation Granger causes real devaluation in short run and long run. This finding implies that nominal devaluation leads to real devaluation.

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Year of publication:	2014-07-24
Authors:	Kyophilavong, Phouphet ; Shahbaz, Muhammad ; Uddin, Gazi Salah
Institutions:	Institut de Préparation à l'Administration et à la Gestion (IPAG)
Subject:	Nominal devaluation \| real devaluation \| Laos

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 2014-446 13 pages
Classification:	F31 - Foreign Exchange
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010860513