| Issue |
E3S Web Conf.
Volume 253, 2021
2021 International Conference on Environmental and Engineering Management (EEM 2021)
|
|
|---|---|---|
| Article Number | 03053 | |
| Number of page(s) | 4 | |
| Section | Environmental Equipment Engineering Management and its Technical Application | |
| DOI | https://doi.org/10.1051/e3sconf/202125303053 | |
| Published online | 06 May 2021 | |
Non-linear Effect of Exchange Rate on Economic Growth in OECD Countries——Panel data analysis based on PSTR model
School of Finance Central Universiy of Finance and Economics Beijing, China
Corresponding author: 307552314@qq.com
Based on the panel data of 35 OECD countries from 2001 to 2019, this paper empirically analyzes the nonlinear effect of exchange rate on economic growth of countries through PSTR model. The results show that exchange rate appreciation has a certain role in promoting economic growth. When the value of the local currency is high, the exchange rate appreciation has a stronger effect on promoting economic growth; when the value of the local currency is low, the exchange rate appreciation has a weaker effect on economic growth. Further research shows that when the local currency value is low, the development of export trade has a strong positive impact on economic growth, while the inflow of FDI has a weak effect on economic growth. When the currency value is low, the promotion effect of export trade on economic growth is relatively weak, while the inflow of FDI shows a stronger promoting effect on economic development, and the nonlinear effect of exchange rate on economic growth is positive. It is the comprehensive effect of these channels.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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