English, Article edition: Exchange market pressure in a small Pacific Island country: a study of Fiji: 1975-2005 T.K. Jayaraman; Chee-Keong Choong

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/29390
Physical Description
  • article
Language
  • English

Edition details

Title
  • Exchange market pressure in a small Pacific Island country: a study of Fiji: 1975-2005
Author
  • T.K. Jayaraman
  • Chee-Keong Choong
Physical Description
  • article
Notes
  • Purpose – Under the fixed exchange rate regime Fiji's currency, which is pegged to a basket of currencies of its major trading partners, has been experiencing severe pressures. The purpose of this paper is to study annual exchange market pressure (EMP) over a 31-year (1975-2005) period and attempt to determine the factors behind EMP. Design/​methodology/​approach – The paper employs the autoregressive distributed lag (ARDL) bounds testing procedure, which is applied to a multivariate model covering four variables, namely EMP in index numbers, and budget deficit, domestic credit to private sector and external debt, all the three expressed as percentages of gross domestic product. Additionally, an uncertainty variable is added to the regression analysis with a view to finding out whether political uncertainty has been responsible for speculative attacks on currency. Existence of a cointegration vector is then investigated. It is then followed by Granger-causality tests in an error-correction model with view to exploring the short- and long-term relationships between the variables. Findings – The study findings are: there existed a long-run relationship between EMP and budget deficit, domestic credit to private sector, external debt and political uncertainty; and EMP was positively related to budget deficit, domestic credit to private sector and external debt as well as speculative pressures exercised by political uncertainty. Originality/​value – The empirical study on EMP in the South Pacific Island countries and in Fiji in particular is the first of its kind. The paper is expected to promote further interest in the studies of currencies of small island countries.
  • Currencies, Exchange rates, Fiji, Islands, Pacific region
  • RePEc:eme:ijsepp:v:35:y:2008:i:12:p:985-1004
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment