The Effect of Exchange Rate Fluctuations on the Economic Growth Due to Financial Markets Deepening in Some Selected OPEC Countries

Subject Areas : Financial Economics

مهدی بصیرت ¹ , آرزو نصیر پور ² , علیرضا جرجرزاده ³

1 - استادیار و مدیر گروه اقتصاد، دانشگاه آزاد اسلامی واحد علوم تحقیقات خوزستان.ایران
2 - دانشجوی کارشناسی ارشد رشته اقتصاد، دانشگاه آزاد اسلامی، واحد علوم و تحقیقات خوزستان. ایران
3 - استادیار گروه اقتصاد، دانشگاه آزاد اسلامی، واحد علوم تحقیقات خوزستان. ایران

Received: 2016-01-10 Accepted : 2016-03-11 Published : 2015-06-10

Keywords: Economic Growth, C23, F31, Financial Development, 004, Keywords: currency fluctuation, panel data. JEL Classification: 016,

Abstract :

  Abstract Fluctuations in the real exchange rate, including factors that could affect macroeconomic performance and especially economic growth. It can be said that a factor in the analysis of the relationship between exchange rate volatility and economic growth has received little attention is the development level of countries’ financial markets. This study was aimed to investigate the effect of exchange rate fluctuations on economic growth considering rate of development of financial markets in selected Member Countries of OPEC over the period 1981-2010. The effects of inflation on economic growth have been studied as well. The results obtained by analyzing of panel data show that the effect of financial development on economic growth and the mutual effect of exchange rate fluctuations and financial development on economic growth is positive, but statistically view are not significant.