The exchange rate policies of East Asia countries and the effects of the exchange rate policies on exports

Depending on the level of development and economic conditions of each country, policy makers wants to choose the most effective exchange rate policies from various exchange rate policies. Because, the exchange rate policies are the most important indicators of foreign trade especially the export which is one of the major determinant of the economy. Today, export, which have a large impact on the overall economy is one of the economic developmenet strategies that is accepted by many developing countries. As a result of the emprical study is observed which is export-led growth strategy has contributed to the economic growth which is properly selected depending on exchange rate. This study examined the relationship between real exchange rate with weighted GDP and real export in East Asia Countries which are adopted export-led growth strategy whose economies are recently growing rapidly. In the panel data analysis method, the estimated data set of variables includes 2001-2012 periods of the China, Indonesia, S. Korea, Malaysia, Philippines and Thailand. According to the real export function which is estimated by the fixed effects method, there is a significant and positive relationship between the real export and the real exchange rate as well as the weighted GDP. In other words, appreciation of the real esxchange rate and the increase of the weighted GDP is effective in improving the East Asia countries's real export. Consistent with the real export function which is estimated by the random effects method, there is a significant and positive relationship between real export and the weighted GDP however there is not a significant relationship between real export and real exchange rate.