Selected Papers from 2018 Asia-Pacific Conferenceon Economics & Finance (APEF 2018)

A special issue of International Journal of Financial Studies (ISSN 2227-7072).

Deadline for manuscript submissions: closed (31 August 2018) | Viewed by 14968

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Centre for Policy Research and International Studies, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia
Interests: applied econometrics; economic growth and development
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Universitas Sebelas Maret (UNS), Indonesia

Special Issue Information

Dear Colleagues,

Research and supported by BEFfore from Universiti Malaysia Sarawak, will be held in Singapore on the 26–27 July, 2018, at the Holiday Inn Singapore Atrium. APEF 2018 is a meeting place for economists and financial experts from academia, government, and the private sector to present their research results, exchange ideas, and network.

This year's sessions will look at how protectionist policies are affecting the world economy. Researchers in the areas of finance are invited to submit full paper to this Special Issue.

Dr. Kai-Hong Tee
Dr. Chor Foon Tang
Dr. Irwan Trinugroho
Guest Editors

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Published Papers (1 paper)

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Research

22 pages, 3076 KiB  
Article
The Effect of Exchange Rate Volatility on International Trade and Foreign Direct Investment (FDI) in Developing Countries along “One Belt and One Road”
by Rashid Latief and Lin Lefen
Int. J. Financial Stud. 2018, 6(4), 86; https://doi.org/10.3390/ijfs6040086 - 16 Oct 2018
Cited by 41 | Viewed by 14604
Abstract
The “One Belt and One Road” (OBOR) project was started by the Chinese government with the aim of achieving sustainable economic development and increasing cooperation with other countries. This project has five major objectives, which include (i) increasing trade flow, (ii) encouraging policy [...] Read more.
The “One Belt and One Road” (OBOR) project was started by the Chinese government with the aim of achieving sustainable economic development and increasing cooperation with other countries. This project has five major objectives, which include (i) increasing trade flow, (ii) encouraging policy coordination, (iii) improving connectivity, (iv) obtaining financial integration, and (v) fortifying closeness between people. This paper aims to analyze the effect of exchange rate volatility on international trade and foreign direct investment (FDI) in developing countries along “One Belt and One Road”. We selected seven developing countries which are part of this project, namely Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. We collected panel data for the period 1995 to 2016 from the U.S. Heritage Foundation, International Financial Statistics (IFS) (a database developed by the International Monetary Fund), and World Development Indicators (WDI) (a database developed by the World Bank). We applied Generalized Autoregressive Conditional Heteroscedasticity (GARCH) (1,1) and threshold-Generalized Autoregressive Conditional Heteroscedasticity (TGARCH) (1,1) models to measure the exchange rate volatility. Furthermore, we employed a fixed effect model to analyze the relationship of exchange rate volatility with international trade and FDI. The results of this paper revealed that exchange rate volatility affects both international trade and FDI significantly but negatively in OBOR-related countries, which correlates with the economic theory arguing that exchange rate volatility may hurt international trade and FDI. It can be concluded that exchange rate volatility can adversely affect international trade and FDI inflows in OBOR-related countries. Full article
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