This paper concerns with the effect of exchange rate on gross domestic product (GDP) in the five founding member countries of the Association of Southeast Asian Nations (ASEAN-5) namely, Indonesia, Malaysia, Thailand, Singapore and Philippines. From theoretical perspective, exchange rate depreciation is a sign of economic failure in developing countries. However national economic perspective shows its merit in the increasing size of output. In this paper analysis, a set of panel data is used in which the time period was from 1980 to 2014 for the exchange rate variable of each member country. For the variable of GDP, the time period was from 1981 to 2015. In the pooled ordinary least squares (OLS) estimation, the real exchange rate coefficient had a statistically significant effect on the GDP level in the five member countries. The results showed that exchange rate depreciation would cause an increase in the countries' level of GDP. The implication from this research is that exchange ra.....

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This study examines the effects of exchange rate depreciation on economic performance, which  indirectly affects economic growth and poverty reduction in 11 developing countries by using annual  data during 1980-2016. Three methods of analysis, namely Autoregressive Distributed Lag (ARDL),  Fully Modified Ordinary Least Squares (FMOLS), and Panel Autoregressive Distributed Lag (P-ARDL)  applied for analysing eight models constructed. The nominal exchange rate is the main interest  variable in the economic performance model. Foreign direct investment, international reserve, and  trade balance are the main interest variables in the economic growth model and poverty reduction  model, respectively. By considering the incidence of the structural break, the results of  time-series analysis using the ARDL method shows that the nominal exchange rate contributes  positively to foreign direct investment in 7 countries. The results also show the nominal exchange  rate negative.....

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