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The impact of export growth to stock market in a managed floating exchange rate regime: A VAR Analysis

Hasanujzaman, Muhammad (2016): The impact of export growth to stock market in a managed floating exchange rate regime: A VAR Analysis.

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Abstract

This paper examines the dynamic effects of export growth to the stock market index in a managed-floating exchange rate regime in Bangladesh during the period 2004:M06-2013:M07. Using vector autoregressive (VAR) model, the impulse responses of the exchange rate and stock index (as well as prices, import and money market rate) to the export shock is studied. The result shows that exchange rate reacts negatively against a positive export shock.On the contrary, the response of stock index to one standard deviation positive innovation on export is positive, at least after certain period.

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