This paper explores relationship between the dependent variable GDP and independent variables exchange rate intervention and trade openness in BRICS group of developing nations. The study used panel data modeling on fifteen years monthly data from January 1998 to September 2012, the data collected from various source in BRICS countries. To know the individual effect of these variables on GDP, the study employed FMOLS and results explicit individual effects on GDP and shows trade openness is highly influencing the GDP than other two variables. The nations with high trade openness brings more investment to the country and economy will increase and monetary policy of the country will be liberal which allows fluctuations in the exchange rates of the nations, the exposure to the international trade give competitiveness to the domestic export products, helps to increase the GDP.
Exchange Rate, Forex Reserve And Trade Openness On GDP In BRICS Countries
Journal of Banking, Information Technology & Management
Vol. 14 - No. 2