An analysis of the price determinants in foreign exchange market

The Elasticity of Demand is a measure of sensitiveness of demand to the change in the price of the commodity. Determinants of Elasticity of Demand Apart from the price, there are several other factors that influence the elasticity of demand. The income of the consumer also affects the elasticity of demand. For high-income groups, the demand is said to be less elastic as the rise or fall in the price will not have much effect on the demand for a product.

An analysis of the price determinants in foreign exchange market

Volume 41OctoberPages Foreign direct investment, exports and economic growth: The article applied the autoregressive distributed lag model, known as the ARDL bounds testing approach to cointegration for the long run relationship between economic growth, foreign direct investment and exports.

The error correction model was used to examine the short run dynamics; and the VECM Granger causality approach was used to investigate the direction of causality.

An analysis of the price determinants in foreign exchange market

The article confirmed cointegration between economic growth, foreign direct investment and exports. The article indicates that both foreign direct investment and exports spur economic growth contrary to some studies, which found that FDI does not cause economic growth. The VECM Granger causality analysis found unidirectional causality between economic growth and foreign direct investment running from foreign direct investment to economic growth, unidirectional causality between foreign direct investment and exports running from foreign direct investment to exports and bidirectional causality between economic growth and exports.

Market News Headlines

On the policy front, the government could stimulate foreign direct investment through incentives to investors, creation of a good macroeconomic environment and a careful utilisation of loose monetary policy to grow the economy.

Previous article in issue.Determinants of Elasticity of Demand Definition: The Elasticity of Demand is a measure of sensitiveness of demand to the change in the price of the commodity.

Determinants of Elasticity of Demand Definition: The Elasticity of Demand is a measure of sensitiveness of demand to the change in the price of the commodity. The main objectives are (1) To analyze the determinants of Foreign Exchange Rate in Pakistan (2) To know which of the determinants is playing the main role in foreign exchange rate, and (3) To make appropriate suggestions for suitable policy implementation for problems arising from the.

Analysis the Determinants of Market Stock Price Movements: Exchange in Jordan. Keywords: Market price, Comovement, Emerging markets 1. Introduction Whether stock markets across national borders are integrated is important for several reasons.

For global of foreign listings. The third issue relates to the market efficiency hypothesis. Preliminary versions of economic research.

The Time-Varying Effect of Monetary Policy on Asset Prices. Pascal Paul • Federal Reserve Bank of San FranciscoEmail: [email protected] First online version: November Table 1 indicates that FDI inflows as a percentage of GDP using five-year averages since has never surpassed 2%.

It should be noted that between and , FDI inflows to GDP fluctuated between % and % (Wöcke and Sing, ).Further, the annual growth between and was a negative % and it slightly improved in .

Events homepage | Centre for Economic Policy Research