Drivers of Real Exchange Rate in the Small Open Island of Mauritius

Authors

  • Ashok Babubudjnauth

Keywords:

Abstract

This paper investigates the factors of real exchange rate RER in Mauritius by implementing a dynamic regression approach on quarterly data from 1999 Q1 to 2016 Q4 Productivity differential interest rate differential openness gross domestic fixed capital formation and share price index are the main triggers of RER in the long-run In the short-run productivity differential and interest rate differential drive real exchange rate Thus RER will converge to its long-run equilibrium level if these factors are allowed to adjust freely

How to Cite

Ashok Babubudjnauth. (2021). Drivers of Real Exchange Rate in the Small Open Island of Mauritius. Global Journal of Human-Social Science, 21(E2), 19–31. Retrieved from https://socialscienceresearch.org/index.php/GJHSS/article/view/3626

Drivers of Real Exchange Rate in the Small Open Island of Mauritius

Published

2021-01-15