Determinants of exchange rate practices: some empirical evidence from Thailand

Title: Determinants of exchange rate practices: some empirical evidence from Thailand
Creator: Agbola, Frank W.; Kunanopparat, Chartri
Relation: Applied Economics Vol. 37, Issue 7, p. 807-816
Publisher Link: http://dx.doi.org/10.1080/00036840500061061
Publisher: Routledge - Taylor & Francis
Resource Type: journal article
Date: 2005
Description: Although Thailand has achieved a spectacular average annual growth rate of 8% in the past two decades, due largely to the opening of the economy to international trade, there is not yet a consensus on the exchange rate regime that is most suited to the restoration of sustained growth in Thailand. This study empirically investigates the predictors of exchange rate regimes in Thailand using quarterly data spanning the period 1990:1 and 2002:3. Results indicate that the government is likely to choose a pegged exchange rate regime in periods of monetary shocks and unsustainable public finance whereas an open economy with a degree of economic development and foreign reserves will encourage the government to opt for a flexible exchange regime in Thailand.
Subject: Thailand; annual growth; international trade; exchange rate regimes; pegged exchange rate; economic development
Identifier: http://hdl.handle.net/1959.13/26303
Identifier: uon:836
Identifier: ISSN:0003-6846
Language: eng
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