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PRESENTATION ARCHIVES
  N°125  
Issue Q1 2011  
The interrelationship between exchange-rate uncertainty and unemployment for South Korea and Taiwan: Evidence from a vector autoregressive approach  
Shu-Chen Chang
 
The goal of this paper is to estimate the effect between exchange-rate uncertainty and unemployment in South Korea and Taiwan. We use a vector autoregressive model to provide an efficient estimation between exchange-rate uncertainty and unemployment. We found that a long-run equilibrium relationship between exchange-rate uncertainty and unemployment exists in both Taiwan and South Korea when exchange-rate uncertainty is generated by two different measures. The exchange-rate uncertainly has a short-run impact on unemployment and vice versa, no matter which measure of uncertainty is used. Abstract

   
EXCHANGE-RATE UNCERTAINTY ; UNEMPLOYMENT ; GARCH ; Keywords
J64 ; F31 ; JEL classification
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