Document Type : Quarterly Journal

Authors

• Arshia Faraji Tabrizi ¹
• Kambiz Hojabre Kiani ¹
• Abbas Memarnejad ²
• Farhad Gaffari ³

¹ Department of Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran

² Department of Economics, Science and Research Branch, Islamic Azad University Tehran, Iran.

³ Department of Economics, Science and Research Branch , Islamic Azad University, Tehran, Iran.

Abstract

The exchange rate is one of the most important macroeconomic variables, and how it affects other economic variables, including GDP, is one of the most important challenges in macroeconomics, especially in the last few decades, industrialized and developing countries. The purpose of this study is to investigate the factors affecting the GDP of selected countries by emphasizing the role of exchange rates with the ARDL-PMG approach. The results indicate that in developed countries and developing countries in the long run the exchange rate Real has a negative and significant effect on GDP. On the other hand, the variables of physical capital accumulation, government spending, the degree of openness of the economy and liquidity have a positive effect on GDP. In this regard, the variable of physical capital accumulation has had the highest positive impact on GDP in both developing and developed countries. At the same time, the negative effect of exchange rates on GDP in developing countries is greater than in developed countries. Therefore, according to the results of this study, economic risks in developing countries are higher than developed countries.

Keywords

• Real Exchange Rate
• Gross Domestic Product (GDP)
• Panel Auto Regressive Distributed lag