Abstract

This paper aims to determine the significance relation and direction of stock markets and exchange rate on Fragile five Countries (South Africa, Turkey, Indonesia, India, and Brazil) between January 2010 to December 2019. This study applied the VAR Analysis and Granger Causality Test to determine the relationship among exchange rates and stock indexes. The results show that South Africa and Turkey exchange rates and stock indexes are in bidirectional relationships, for India and Brazil, there is a one-way causality finding from exchange rate to stock price, and the results for Indonesia show no causality.

Details

Title
The Relationship between Exchange Rates and Stock Markets for the Fragile Five Countries
Author
Kadra Yusuf Hersi; Koy, Ayben
Pages
1-13
Section
Articles
Publication year
2020
Publication date
Jun 2020
Publisher
Istanbul Commerce Üniversity, Faculty of Social Sciences
e-ISSN
21499748
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2411169515
Copyright
© 2020. This work is published under http://creativecommons.org/licenses/by-nc/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.