An empirical study of the determinants of exchange rate for New Zealand
Date Issued
2016
Date
2016
Author(s)
Kao, Yu-Ching
Abstract
Australia and South Africa is rich in national production and export of raw materials; New Zealand is the world''s most national production and export of dairy products, the time before the 2008 financial crisis, when the global economy pomp, New Zealand and Australian dollar exchange rate fluctuations huge entice many investors entering earner is poor, or long-term holding New Zealand or Australian dollars. Plus, since the two currencies at the time of deposit rates are high, and there are quite a number of banks to the introduction of these two currencies denominated financial products, it is attracting a lot of investors to participate in investment-related financial products. The same as the major exporter of raw materials, there are many studies discuss about the factors of AUD fluctuation but seldom for NZD. New Zealand is the chief dairy products export country. We are going to search whether the NZD will be fluctuated by the price and the quantity of dairy products, or by other variables. This study is based on Augmented Dickey–Fuller test (ADF) and Vector Autoregression model (VAR) and monthly data from Jan-1995 to Jun-2015. We can approve NZD will fluctuated by the price and quantity of export dairy products, like AUD; they will change in the same direction. Besides, the total quantity to export to USA and foreign exchange reserves are positive to NZD exchange rate.
Subjects
ADF
VAR
exchange rate for New Zealand
Overall variable
Forex ready
Purchasing Power Parity
Type
thesis
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