Several studies have been conducted

Several studies have been conducted on the determinants of Real Exchange rate at the national level as well as at international level. In this section, we have summarized few of them below.
An early single-country study of this type was by Heller (1978) analyzed economic characteristics influencing the exchange rate regime. The research analyzed the factors like large size, a relatively small foreign trade sector, a high degree of international financial integration, an inflation rate that differs from the world average, and a well-diversified foreign trade pattern.
By using postwar data for the United States and Japan. Modeste (1994) determines the determinants of the real exchange rate which were influenced by exchange rate policy or income policy or by a combination of both policies. Faruqee (1995) examines net foreign assets as the long-run determinants of the real exchange rate like net foreign assets, and other factors affecting trade flows.
Unlike the approach from previous studies. using the error correction model (ECM), Aron et al. (1997) quantified short- run and long- run influences for the real exchange rate in South Africa. In their research, conducted over the quarterly data from 1970 to 1995, they find that real exchange rate is depreciated due to number of factors like terms of trade, real dollar gold price, tariffs, capital flows, gross reserves of bank and government expenditure.
The quantitative methods appear increasingly common in many research articles, especially the study of the real exchange rate. Drine and Rault (2001) analyzed the factors effecting real exchange rate in MENA (Middle East and North Africa) countries by applying new panel data unit root tests, panel co-integration technique. The results investigate that per capita output, government expenditure, real interest rate differentials and openness are factors affecting the real exchange rate.
Mkenda (2001) has also analyzed the main determinants and estimated the degree of misalignment of the real exchange rate in Jambia. Johansen cointegration analysis is conducted on time series data from 1971 to 1993. The study explores that terms of trade and government consumption are depreciating real exchange rate while investment share, the growth of real GDP, central bank reserves and trade taxes are appreciating real exchange rate.
By applying recently developed panel co-integration technique, Dvine and Rault (2003) have tackled the empirical issues of the real exchange rate literature. Forty-five developing countries are selected for the analysis. The researchers determine that domestic investment, GDP per capita, foreign direct investment and terms of trade have depreciated the real exchange rate while the share of public spending and trade policy are appreciating real exchange rate.
Zalduendo (2006) has disentangled the effects of oil prices from other factors underlying Venezuela’s equilibrium real exchange rate and examined the role of the foreign exchange controls in supporting the official exchange rate. In the analysis, it is concluded that the real exchange rate is appreciated by UK Brent oil price deflated; differentials in PPP-based real GDP per capita and differentials in the real interest rate. Real exchange rate is depreciated by government expenditure.
Hyder and Mahboob (2006) have estimated the equation of equilibrium real effective exchange rate, measured the degree of exchange rate misalignment and provided guidance to policy makers in implementing exchange rate policy. Annual data of 1978 – 2005 explains that terms of trade, real investment, workers’ remittances, and total factor productivity differentials are significant cause of depreciation of Pak rupee while trade openness, government expenditure and capital to GDP ratio are appreciating Pak rupee.
Frankel (2007) has econometrically investigated the determinants of the real value of the South African rand. The author has taken quarterly data from 1981 to 2006. He has employed the ordinary least square method to analyze the relationships and has concluded that real weighted mineral and metal price index and real interest rate differentials are increasing the real exchange rate. While dummy for capital market liberalization and dummy interacted with real interest rate differentials are appreciating real exchange rates.
Zakaria et al. (2007) have provided estimates of a model for the determination of nominal bilateral exchange rates of Staník and Cerge (2007) use ARCH (autoregressive conditional Heteroskedasticity) model for analyzing the factors affecting to exchange rate volatility in the European countries. Economic openness is the factor which effect the exchange rate volatility of each country of Europe.
Candelon et al. (2007) estimate the bilateral equilibrium real exchange rates for European states using panel co-integration techniques. They reveal significant link of productivity levels, openness, inflation and real exchange rate.
Carrera and Restout (2008) take Latin American from the time period from 1970 to 2006 for investigating the behavior of real exchange rates by using non-stationary panel econometrics. They explore various factors for the exchange rate, in the long run, such as government spending, terms of trade, the openness, foreign capital flows.
Guclu (2008) has empirically analyzed the determinants of exchange regimes for the period from 1970 to 2006. Using Ordered Probit model, he explores that the exchange rate is depreciated due to GDP, GDP per capita, openness, capital account to GDP ratio, capital account openness, terms of trade and capital account restriction. Inflation, Geographical trade and money growth may depreciate and appreciate exchange rate. On the other side, bank reserves and nationalist causes of the lower exchange rate.
Al Samara (2009) describes the factors which determine the equilibrium real exchange rate and affects its volatility. GARCH model is applied on the time series data from 1980 to 2009. The study concludes the productivity differentials, trade openness and gross capital formation as the factors which depreciate and total government spending appreciates the exchange rate in Syrian economy.
Rehman et al. (2010) have analyzed the impact of foreign exchange inflows on equilibrium real exchange rate of Pakistan for the period 1993 to 2009 through behavioral the equilibrium real exchange rate approach. They have employed Johansen Co-integration test and monthly data for the results. The study shows that productivity, foreign direct investment and foreign remittances are increasing real exchange rate while openness is decreasing real exchange rate in Pakistan.
More recently, Ha Thi Thieu Dao and Pham Thi Binh Minh (2011) has estimated the misalignment in exchange rate by using the ECM model and quarterly macro data from 2000 to 2010. They concluded that Viettnamese Dong undervalued about 2 percent. Additionally, the economic openness and domestic credit have the most important roles to explain the cause of real exchange rate misalignment. In this case, Nguyen Thi Thu Hang et al (2011) have indicated that in the same study period, the largest misalignment of the real exchange rate is about 20% and the lowest misalignment is about 1%.
Saeed et al. (2012) have undertaken an econometric analysis of determinants of exchange rate for US Dollar in terms of Pakistani rupee within the framework of monetary approach. They have utilized monthly data from 1982 to 2010 and have applied the autoregressive distributed lag (ARDL) technique for estimation. In the study, relative money, relative forex reserves and relative debt are depreciating exchange rate.
Fida et al. (2012) have examined the relationship with respect to the Pakistani economy between exchange rates and external debt. The quarterly data from 1983 to 2008 has been utilized. By employing Johansen co-integration test, they examine that terms of trade, government expenditure and productivity are appreciating exchange rate.
Insah and Chiaraah (2013) determine the sources of exchange rate volatility in Ghana based on the autoregressive distributed lag (ARDL) model and use annual data covering the period 1980 to 2012. The study suggests the government expenditure, domestic and external debts are major determinant of real exchange rate volatility.
Gan et al. (2013) develop measures of the direction and extent of misalignment based on a reduced-form real effective exchange rate (REER) model using unit root tests and cointegration presented by Johansen and Juselius (1990) procedures. Openness, money supply, productivity and government spending are having long run relationship with exchange rate. Error correction model (ECM) suggests also short- run relationships with error correction term 0.85.

Kết quả (Anh) 1:

Several studies have been conducted on the determinants of Real Exchange rate at the national level as well as at international level. In this section, we have summarized few of them below. An early single-country study of this type was by Heller (1978) analyzed economic characteristics influencing the exchange rate regime. The research analyzed the factors like the large size, a relatively small foreign trade sector, a high degree of international financial integration, an inflation rate that Differens from the world average, and a well-diversified foreign trade pattern. By using postwar data for the United States and Japan. Modeste (1994) determines the determinants of the real exchange rate which were influenced by the exchange rate policy or income policy or by a combination of both policies. Faruqee (1995) examines the net foreign assets as the long-run determinants of the real exchange rate like the net foreign assets, and other factors affecting trade flows. Unlike the approach from previous studies. using the error correction model (ECM), Aron et al. (1997) quantified the short-run and long-run influences for the real exchange rate in South Africa. In their research, conducted over the quarterly data from 1970 to 1995, they find that real exchange rate is depreciated due to number of factors like the terms of trade, real dollar gold price, tariffs, capital flows, gross reserves of bank and government expenditure. The quantitative appear increasingly common in many research articles, especially the study of the real exchange rate. Drine and Rault (2001) analyzed the factors effecting real exchange rate in the MENA (Middle East and North Africa) countries by applying new panel data unit root tests, panel co-integration technique. The results investigate that per capita output, government expenditure, real interest rate differentials and openness are factors affecting the real exchange rate. Mkenda (2001) has also analyzed the main determinants and estimated the degree of misalignment of the real exchange rate in Jambia. Johansen cointegration analysis is conducted on time series data from 1971 to 1993. The study explores that terms of trade and government consumption are depreciating real exchange rate while investment share, the growth of real GDP, the central bank reserves and trade taxes are appreciating my real exchange rate. By applying recently developed panel co-integration technique, Dvine and Rault (2003) have tackled the empirical issues of the real exchange rate literature. Forty-five developing countries are selected for the analysis. The researchers determine that domestic investment, GDP per capita, foreign direct investment and terms of trade have the depreciated real exchange rate while the share of public spending and trade policy are appreciating my real exchange rate. Zalduendo (2006) has disentangled the effects of oil prices from other factors underlying Venezuela's equilibrium real exchange rate and examined the role of the foreign exchange controls in supporting the official exchange rate. In the analysis, it is concluded that the real exchange rate is appreciated by UK Brent oil price deflated; differentials in the PPP-based real GDP per capita and differentials in the real interest rate. Real exchange rate is depreciated by government expenditure. Hyder and Mahboob (2006) have estimated the equation of equilibrium real effective exchange rate, measured the degree of exchange rate misalignment and provided guidance to policy makers in implementing the exchange rate policy. Annual data of 1978-2005 explains that terms of trade, real investment, workers ' remittances, and total factor productivity differentials are significant cause of depreciation of Pak rupee while trade openness, government expenditure and capital to GDP ratio are appreciating my Pak rupee. Frankel (2007) has investigated econometrically the determinants of the real value of the South African rand. The author has taken quarterly data from 1981 to 2006. He has employed the ordinary least square method to analyze the relationships and has concluded that real weighted mineral and metal price index and real interest rate differentials are increasing the real exchange rate. While dummy for capital market liberalization and dummy interacted with real interest rate differentials are appreciating my real exchange rates. Zakaria et al. (2007) have provided estimates of a model for the determination of nominal bilateral exchange rates of Staník and Cerge (2007) use ARCH (autoregressive conditional Heteroskedasticity) model for analyzing the factors affecting to exchange rate volatility in the European countries. Economic openness is the factor which effect the exchange rate volatility of each country of Europe. Candelon et al. (2007) estimate the equilibrium real bilateral exchange rates for European states using panel co-integration techniques. They reveal significant link of productivity levels, openness, inflation and real exchange rate.Carrera and Restout (2008) take Latin American from the time period from 1970 to 2006 for investigating the behavior of real exchange rates by using non-stationary panel econometrics. They explore various factors for the exchange rate, in the long run, such as government spending, the terms of trade, the openness, foreign capital flows. Guclu (2008) has analyzed empirically the determinants of exchange regimes for the period from 1970 to 2006. Using Ordered Probit model, he explores that the exchange rate is depreciated due to the GDP, GDP per capita, openness, capital account to GDP ratio, capital account openness, terms of trade and capital account restriction. Inflation, Geographical trade and money growth may depreciate and appreciate the exchange rate. On the other side, bank reserves and nationalisent causes of the lower exchange rate. Al Samara (2009) describes the factors which determine the equilibrium real exchange rate and affects its volatility. GARCH model is applied on the time series data from 1980 to 2009. The study concludes the productivity differentials, trade openness and gross capital formation as the factors which depreciate and total government spending appreciates the exchange rate in Syrian economy. Rehman et al. (2010) have analyzed the impact of foreign exchange inflows on equilibrium real exchange rate of Pakistan for the period 1993 to 2009 through behavioral the equilibrium real exchange rate approach. They have employed Johansen Co-integration test and monthly data for the results. The study shows that productivity, foreign direct investment and foreign remittances are increasing real exchange rate while openness is decreasing real exchange rate in Pakistan. More recently, Ha Thi Us Knives and Pham Thi Binh Minh (2011) has estimated the misalignment in exchange rate by using the ECM model and quarterly macro data from 2000 to 2010. They concluded that Viettnamese Dong undervalued about 2 percent. Additionally, the economic openness and domestic credit have the most important roles to explain the cause of real exchange rate misalignment. In this case, Nguyen Thi Thu Hang et al (2005) have indicated that in the same study period, the largest misalignment of the real exchange rate is about 20% and the lowest misalignment is about 1%.Saeed et al. (2012) have undertaken an econometric analysis of the determinants of the exchange rate for US Dollar in terms of Pakistani rupee within the framework of monetary approach. They have utilized monthly data from 1982 to 2010 and have applied the autoregressive distributed lag (ARDL) technique for estimation. In the study, relative money forex reserves, relative and relative debt are depreciating exchange rate. FIDA et al. (2012) have examined the relationship with respect to the Pakistani economy between exchange rates and external debt. The quarterly data from 1983 to 2008 has been utilized. By employing Johansen co-integration test, they examine that terms of trade, government expenditure and productivity are appreciating my exchange rate. Insah and Chiaraah (2013) determine the sources of exchange rate volatility in Ghana based on the distributed lag (ARDL) autoregressive model and use of annual data covering the period 1980 to 2012. The study suggests the government expenditure, domestic and external debts are the major determinant of real exchange rate volatility. Gan et al. (2013) develop measures of the direction and extent of misalignment based on a reduced-form real effective exchange rate (REER) model using unit root and cointegration tests presented by Johansen and Juselius (1990) procedures. Openness, money supply, productivity and government spending are having long run relationship with exchange rate. Error correction model (ECM) suggests also the short-run relationships with error correction term 0.85.