The Effect of Global and Local Factors in Azerbaijan Reel Exchange Rate: Evidence from Quantile Regression

Authors : Şakir GÖRMÜŞ, Amal ESSAYEM, Murat GÜVEN

Pages : 77-89

Doi:10.54429/seyad.1275990

View : 41 | Download : 24

Publication Date : 2023-06-30

Article Type : Research Paper

Abstract :In this study, we analyze the effect of selected local and global factors on Azerbaijan\`s real exchange rate during the period of January 2013 to April 2021, using the quantile regression method that takes asymmetry into account. The results showed that all variables generally influence the real exchange rate at lower quantiles. Specifically, an increase in OILP and CPI leads to a decrease in RER at Q1-Q5 and Q1-Q2, respectively. Furthermore, an increase in RESV and GPR leads to a decrease in RER at Q1-Q2 and Q1, respectively. The effect of the coefficients also decreases as the quantiles increase.
Keywords : Azerbaycan, Petrol Fiyatları, Küresel Faktörler, Quantile Regresyon, Reel Döviz Kuru