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Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

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Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

UNIVERSITY OF ECONOMICS HO CHI MIN H CITY VIETNAMINSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDSVIETNAM - NETHERLANDSPROGRAMME FOR M.A IN DEVELO

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand OPMENT ECONOMICSEXCHANGE RATE & TRADE BALANCE:A NEW APPROACH USING BIG MAC INDEX FOR THE CASE OF THAILANDA thesis submitted 111 partial fulfilment of

the requirements for the degree ofMASTER OF ARTS IN DEVELOPMENT ECONOMICSBYVO THE ANHAcademic Supervisor:Dr. VO HONG DUCHO ( HI MINH CITY. DECEMBER 20 Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

14ABSTRACTThis thesis focuses on achieving Aro main objectives'. (1) an evaluation of the Thailand's currency to confinn whether a currency is over- o

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

r undervalued during the period from 1980 to 2013 for the case of Thailand: and (ii) a consideration of the effects of a currency's devaluation on tra

UNIVERSITY OF ECONOMICS HO CHI MIN H CITY VIETNAMINSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDSVIETNAM - NETHERLANDSPROGRAMME FOR M.A IN DEVELO

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand hailand; and the long run relationship between bilateral exchange rate and Thailand's trade balance.In relation to the first objective. the prominent

feature of the study is to use the Big Mac Index (BMI). the first ever study of this kind conducted in Vietnam, for evaluating Thailand's currency and Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

to apply this evaluation in the context of the link between exchange rate and trade balance. Nevertheless, the common-used index, the Consumer Price

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

Index (CPI), is also utilized to compare the effectiveness of BMI with that of the CPITheoretical grounds for evaluating a currency in term of purchas

UNIVERSITY OF ECONOMICS HO CHI MIN H CITY VIETNAMINSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDSVIETNAM - NETHERLANDSPROGRAMME FOR M.A IN DEVELO

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand pirical studies associated with such theory are discussed. Empirical models and results are reported accordingly.To obtain the first objective, the pp

p hypothesis is required to be satisfied in terms of panel cointegration tests. The fully modified OLS (FMOLS) technique IS adopted to determine the e Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

quilibrium exchange rate for evaluation process. On the grounds of the tests of ppp. the panel-based unit root tests as developed by Breitung (2001) a

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

nd the panel cointegration tests by Pedroni (1999. 2001. 2004) and Kao (1999) are adopted. The empirical results confirm a solid validity of ppp for t

UNIVERSITY OF ECONOMICS HO CHI MIN H CITY VIETNAMINSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDSVIETNAM - NETHERLANDSPROGRAMME FOR M.A IN DEVELO

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand ults illustrate that (i) the valuation11of Thailand currency using CPI-based exchange rale is fairly consistent to that of B.\U-based exchange rate wi

th an exception of the outcomes during the 1997 Asian financial crisis; and (ii) the Big Mac exchange rate is better when bilaterally evaluating the T Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

hailand Baht to US dollar.The second main objective - a consideration of the effects of a currency's devaluation on trade balance - could be achieved

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

by the two procedures. The first procedure is to analyze how changes on exchange rate policy, fiscal policy, and monetary' policy affect Thailand’s tr

UNIVERSITY OF ECONOMICS HO CHI MIN H CITY VIETNAMINSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDSVIETNAM - NETHERLANDSPROGRAMME FOR M.A IN DEVELO

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand ading partners with Thailand; (ii) different geography (between regions and regions of countries); (iii) different income levels: and (iv) during diff

erent periods in which Thailand's currency is over- or under-valued. Both OLS method and IV technique are employed because of an endogeneity problems Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

as mentioned in previous studies. The empirical findings indicate that the exchange rate policy plays a central role in explaining Thailand's trade ba

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

lance and the fiscal and monetary policies are beneficial in some cases.The second procedure is to examine the long run relationship between a devalua

UNIVERSITY OF ECONOMICS HO CHI MIN H CITY VIETNAMINSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDSVIETNAM - NETHERLANDSPROGRAMME FOR M.A IN DEVELO

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand 9) and the FMOLS model. The panel FMOLS estimations illustrate that a devaluation of Thailand Baht could provide positive effects on trade balance in

the long run. especially for the groups of country with high income, upper middle income, in America, and Europe. The individual FMOLS regressions bet Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

ween Thailand and each of her 62 trading partners indicate that the devaluation of Thailand's currency would stimulate Thailand’s trade performance wi

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand

th over 20 trading partners, but hurt its performance with the other 10 countries and inconclusive conclusion for the others.IllABBREVIATIONSPPPPurcha

UNIVERSITY OF ECONOMICS HO CHI MIN H CITY VIETNAMINSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDSVIETNAM - NETHERLANDSPROGRAMME FOR M.A IN DEVELO

Luận văn thạc sĩ exchange rate and trade balance, a new approach using big mac index for the case of thailand national Monetary FundVNDVietnam DongIVInstrumental VariableOECDOrganization for Economic Cooperation and DevelopmentVARVector Autoregressive

UNIVERSITY OF ECONOMICS HO CHI MIN H CITY VIETNAMINSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDSVIETNAM - NETHERLANDSPROGRAMME FOR M.A IN DEVELO

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