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An Empirical Investigation Of Relationship Between Industrial Structure And Exchange Rate Regime

Journal: International Journal of Scientific & Technology Research (Vol.2, No. 5)

Publication Date:

Authors : ; ;

Page : 166-170

Keywords : Index Terms Industrial Structure; Exchange Rate Regime; Regression Analysis; Growth;

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Abstract The choice for the adoption of an exchange rate regime is considered very important in a globalized economy. This selection is affected with the evolution of industrial structure of the economy. The changes in exports and industrial base of the economy emphasize the need to redefine the parameters of international financial market. We have studied the relationship between the choice of an exchange rate regime and the development of industrial structure. In our analysis we have defined exchange rate regime as floating and fixed and have used logistic regression analysis for a set of 33 countries in two time sets. The development of industrial base especially the tertiary industry has triggered the adoption of a liberal floating exchange rate regime. The results support our hypothesis of a positive relationship between the evolution of industrial structure and movement towards a liberal exchange rate regime.

Last modified: 2013-08-10 23:35:11