The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009

Abbes Hiri

doi:doi:10.11648/j.ijefm.20140205.12

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The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009

Abbes Hiri

Published in International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 5)

Received: 23 September 2014 Accepted: 7 October 2014 Published: 30 October 2014

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Abstract

In this research paper, I determine equilibrium real exchange rate of Algerian Dinar (DZD) in order to see the influence of fundamental factors toward Algerian Dinar exchange rate, and to understand the appropriate level or sustainability long term trend. Furthermore, I figure out the misalignment for real exchange rate of Algerian dinar. The period of this research paper covers the post crisis era from 1980 to 2009 (quarterly). Using co-integrating regression, I find that variables OIL, GC, LQ, TR, NCF, CF, OPEN and TT have significant influence to real exchange rate in the long run. Misalignment episode gives us seven patterns of situation during this period which are undervaluation during the periods: 1981Q1-1984Q2, 1988Q1-1992Q4, 1994Q2-1996Q4, and 2002Q3-2008Q2; and overvaluation during the periods: 1984Q3-1987Q4, 1993Q1-1994Q1, and 1997Q1-2002Q2.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 5)
DOI	10.11648/j.ijefm.20140205.12
Page(s)	277-284
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Real Effective Exchange Rate, BEER, Algeria, Oil Price, Oil Exporting Country

References

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Abbes Hiri. (2014). The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009. International Journal of Economics, Finance and Management Sciences, 2(5), 277-284. https://doi.org/10.11648/j.ijefm.20140205.12

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ACS Style

Abbes Hiri. The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009. Int. J. Econ. Finance Manag. Sci. 2014, 2(5), 277-284. doi: 10.11648/j.ijefm.20140205.12

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AMA Style

Abbes Hiri. The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009. Int J Econ Finance Manag Sci. 2014;2(5):277-284. doi: 10.11648/j.ijefm.20140205.12

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@article{10.11648/j.ijefm.20140205.12,
  author = {Abbes Hiri},
  title = {The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {2},
  number = {5},
  pages = {277-284},
  doi = {10.11648/j.ijefm.20140205.12},
  url = {https://doi.org/10.11648/j.ijefm.20140205.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140205.12},
  abstract = {In this research paper, I determine equilibrium real exchange rate of Algerian Dinar (DZD) in order to see the influence of fundamental factors toward Algerian Dinar exchange rate, and to understand the appropriate level or sustainability long term trend. Furthermore, I figure out the misalignment for real exchange rate of Algerian dinar. The period of this research paper covers the post crisis era from 1980 to 2009 (quarterly). Using co-integrating regression, I find that variables OIL, GC, LQ, TR, NCF, CF, OPEN and TT have significant influence to real exchange rate in the long run. Misalignment episode gives us seven patterns of situation during this period which are undervaluation during the periods: 1981Q1-1984Q2, 1988Q1-1992Q4, 1994Q2-1996Q4, and 2002Q3-2008Q2; and overvaluation during the periods: 1984Q3-1987Q4, 1993Q1-1994Q1, and 1997Q1-2002Q2.},
 year = {2014}
}

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TY  - JOUR
T1  - The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009
AU  - Abbes Hiri
Y1  - 2014/10/30
PY  - 2014
N1  - https://doi.org/10.11648/j.ijefm.20140205.12
DO  - 10.11648/j.ijefm.20140205.12
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 277
EP  - 284
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20140205.12
AB  - In this research paper, I determine equilibrium real exchange rate of Algerian Dinar (DZD) in order to see the influence of fundamental factors toward Algerian Dinar exchange rate, and to understand the appropriate level or sustainability long term trend. Furthermore, I figure out the misalignment for real exchange rate of Algerian dinar. The period of this research paper covers the post crisis era from 1980 to 2009 (quarterly). Using co-integrating regression, I find that variables OIL, GC, LQ, TR, NCF, CF, OPEN and TT have significant influence to real exchange rate in the long run. Misalignment episode gives us seven patterns of situation during this period which are undervaluation during the periods: 1981Q1-1984Q2, 1988Q1-1992Q4, 1994Q2-1996Q4, and 2002Q3-2008Q2; and overvaluation during the periods: 1984Q3-1987Q4, 1993Q1-1994Q1, and 1997Q1-2002Q2.
VL  - 2
IS  - 5
ER  -

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Author Information

Abbes Hiri

School of Finance, Shanghai University of Finance & Economics, Shanghai, China

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APA Style

Abbes Hiri. (2014). The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009. International Journal of Economics, Finance and Management Sciences, 2(5), 277-284. https://doi.org/10.11648/j.ijefm.20140205.12

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ACS Style

Abbes Hiri. The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009. Int. J. Econ. Finance Manag. Sci. 2014, 2(5), 277-284. doi: 10.11648/j.ijefm.20140205.12

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AMA Style

Abbes Hiri. The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009. Int J Econ Finance Manag Sci. 2014;2(5):277-284. doi: 10.11648/j.ijefm.20140205.12

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@article{10.11648/j.ijefm.20140205.12,
  author = {Abbes Hiri},
  title = {The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {2},
  number = {5},
  pages = {277-284},
  doi = {10.11648/j.ijefm.20140205.12},
  url = {https://doi.org/10.11648/j.ijefm.20140205.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140205.12},
  abstract = {In this research paper, I determine equilibrium real exchange rate of Algerian Dinar (DZD) in order to see the influence of fundamental factors toward Algerian Dinar exchange rate, and to understand the appropriate level or sustainability long term trend. Furthermore, I figure out the misalignment for real exchange rate of Algerian dinar. The period of this research paper covers the post crisis era from 1980 to 2009 (quarterly). Using co-integrating regression, I find that variables OIL, GC, LQ, TR, NCF, CF, OPEN and TT have significant influence to real exchange rate in the long run. Misalignment episode gives us seven patterns of situation during this period which are undervaluation during the periods: 1981Q1-1984Q2, 1988Q1-1992Q4, 1994Q2-1996Q4, and 2002Q3-2008Q2; and overvaluation during the periods: 1984Q3-1987Q4, 1993Q1-1994Q1, and 1997Q1-2002Q2.},
 year = {2014}
}

Copy | Download

TY  - JOUR
T1  - The Real Effective Exchange Rate Misalignment: Application of Behavioral Equilibrium Exchange Rate BEER to Algeria 1980-2009
AU  - Abbes Hiri
Y1  - 2014/10/30
PY  - 2014
N1  - https://doi.org/10.11648/j.ijefm.20140205.12
DO  - 10.11648/j.ijefm.20140205.12
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 277
EP  - 284
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20140205.12
AB  - In this research paper, I determine equilibrium real exchange rate of Algerian Dinar (DZD) in order to see the influence of fundamental factors toward Algerian Dinar exchange rate, and to understand the appropriate level or sustainability long term trend. Furthermore, I figure out the misalignment for real exchange rate of Algerian dinar. The period of this research paper covers the post crisis era from 1980 to 2009 (quarterly). Using co-integrating regression, I find that variables OIL, GC, LQ, TR, NCF, CF, OPEN and TT have significant influence to real exchange rate in the long run. Misalignment episode gives us seven patterns of situation during this period which are undervaluation during the periods: 1981Q1-1984Q2, 1988Q1-1992Q4, 1994Q2-1996Q4, and 2002Q3-2008Q2; and overvaluation during the periods: 1984Q3-1987Q4, 1993Q1-1994Q1, and 1997Q1-2002Q2.
VL  - 2
IS  - 5
ER  -

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