Does a Change in Government Affect Foreign Exchange Rate?: The Case of Korea

• 영문명: Does a Change in Government Affect Foreign Exchange Rate?: The Case of Korea
• 발행기관: 한국무역연구원
• 저자명: Sung Pyo Chi
• 간행물 정보: 『무역연구』제10권 제4호, 105~116쪽, 전체 11쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2014.09.30

영문 초록

In general, a government changes hands by the process of election every four or five years in democratic countries. Does this government change have an effect on the country s foreign exchange rate? In newspapers and economic magazines, we often find articles related to the weakening of a country s currency because of a new government economic policy. However, in academic journals, it is difficult to find any article that shows empirical evidence of the direct relationship between government change and a country s foreign exchange rate. In economic journals, government change such as that caused by political factors has little impact on the foreign exchange rate compared with such economic factors as inflation rate, interest rate, and other balance of payment factors. However, in business journals, political risk has been regarded as one of the major factors that influence international business, such as the 5Ps factor in international marketing. Therefore, using the case of Korea, I want to offer empirical evidence which shows that government change can influence the foreign exchange rate. This empirical result will present foreign scholars and businessmen the political risk of the Korean won-dollar exchange rate can become a considerable factor in international business and the economic environment.

목차

Abstract

Ⅰ. Introduction

Ⅱ. Literature Review

Ⅲ. Research Hypothesis and Research Methodology

Ⅳ. Empirical Results and Conclusion

References

키워드

Foreign exchange rate Government change Political risk 5Ps