The role of oil price shocks on exchange rates for the selected Asian countries: Asymmetric evidence from nonlinear ARDL and generalized IRFs approaches

A-Tier
Journal: Energy Economics
Year: 2022
Volume: 112
Issue: C

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The primary contribution of the current paper is to explicitly take into consideration the role of asymmetries in oil prices when studying the nexus between oil price shocks and the real exchange rates across the selected countries in three regions of Asia. To achieve this contribution, the nonlinear autoregressive distributed lag (NARDL) and generalized impulse response functions (GIRFs) approaches are used. Our NARDL approach discovers that oil prices asymmetrically influence the currencies in such selected Asian economies as Bangladesh, China, India, Korea, the Philippines, and Thailand in both the short and long run. Our GIRFs reveal that a positive shock is more important than a negative shock in determining the currencies of the selected Asian countries. We believe that these outcomes have profound implications for our empirical modeling and policy analysis.

Technical Details

RePEc Handle
repec:eee:eneeco:v:112:y:2022:i:c:s0140988322003309
Journal Field
Energy
Author Count
2
Added to Database
2026-01-24