The LKRlJPY Rate and the UIP

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dc.contributor.author	Nirmali, H.
dc.contributor.author	Rajapakse, C.
dc.date.accessioned	2018-12-03T03:12:00Z
dc.date.available	2018-12-03T03:12:00Z
dc.date.issued	2017-03
dc.identifier.citation	Nirmali, H., Rajapakse, C. (2017). "The LKRlJPY Rate and the UIP", Journal for Studies in Management and Planning, Vol.4 (7), pp. 31-43	en_US
dc.identifier.issn	2395-0463
dc.identifier.uri	http://dr.lib.sjp.ac.lk/handle/123456789/7714
dc.description.abstract	Attached	en_US
dc.description.abstract	Of the main theories that explore on Interest rates and exchange rates, Uncovered Interest Rate Parity (UJP) states that the interest rate difJerential is an unbiased predictor. of the spot exchange rate changes. The impact on investors is that there would be no short term arbitrage profits. Studies based on the relationship between these two variables are rare fOr developing countries like Sri Lanka. Theretorc in order to bridge that gap identilled through search fOr literature, Autoregressive DistJibuted Lags method was employed here to test the UIP. Monthly data on exchange rates and three month risk Iiee interest rates with regard to the selected major extemal trader, Japan fOr the period tiom 2001-2014 were used for this purpose. The findings reveal that UIP does not hold in the short run but there is evidence for UIP to hold in the long run fOr Sri Lanka.
dc.language.iso	en	en_US
dc.publisher	Pen2Print Edupedia Publications Pvt Ltd.	en_US
dc.subject	Autoregressive Distributed Lags (ARDL) Model, Exchange Rates, Interest Rates, Uncovered Interest Rate Parity (UIP), Unit root tests.	en_US
dc.title	The LKRlJPY Rate and the UIP	en_US
dc.type	Article	en_US