International Research journal of Management Science and Technology

  ISSN 2250 - 1959 (online) ISSN 2348 - 9367 (Print) New DOI : 10.32804/IRJMST

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CO-INTEGRATION AND CAUSALITY BETWEEN EXCHANGE RATE AND FOREIGN EXCHANGE RESERVES OF BRICS COUNTRIES

    1 Author(s):  TRUPTI SHANKAR RAUT

Vol -  8, Issue- 8 ,         Page(s) : 88 - 94  (2017 ) DOI : https://doi.org/10.32804/IRJMST

Abstract

This paper studies the cointegration and causality between exchange rate and foreign exchange reserves of BRICS countries by applying cointegration and granger causality test to data from 1997-2016. The study revealed that found that there is no long run relationship between Exchange Rate and Foreign exchange reserves of Brazil, Russia and India, there exists bi-directional causality between exchange rate and foreign exchange reserves of China.

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