This paper examines the relationship between stock prices and exchange rates. Both the long-run and the short-run association between these variables are explored. The study uses monthly data on four South Asian countries Pakistan, India, Bangladesh and Sri- Lanka, for the period January 2008 to December 2012. The paper applied Co-integration, Vector Error Correction Modelling Technique and Standard Granger Causality tests to examine the association between stock prices and exchange rates. No long-run and short-run association between stock prices and exchange rates for Pakistan and India was found. No short-run association was found between Bangladesh and Sri Lanka however a long-run bi-directional association between stock prices and exchange rates was detected between Bangladesh and Sri Lanka.
Total Reviews: 0
After completion purchase and payment you will get an email with download link of book. You can download this book within 24 hours. Be remember you can't download this book after 24 hours.