• Northumbria University Featured PhD Programmes
  • University of Warwick Featured PhD Programmes
  • University College London Featured PhD Programmes
  • National University of Singapore Featured PhD Programmes
  • University of Glasgow Featured PhD Programmes
  • University of East Anglia Featured PhD Programmes
  • University of Leeds Featured PhD Programmes
University College London Featured PhD Programmes
University of Southampton Featured PhD Programmes
University of Oxford Featured PhD Programmes
National Institute of Agricultural Botany (NIAB) Featured PhD Programmes
Newcastle University Featured PhD Programmes

Investigating the relationship between natural resources export and the real exchange rate of the exporting country’s currency


Project Description

This project plans to investigate one specific aspect of the ’resource curse’, namely, the relationship between natural resources export and the real exchange rate of the exporting country’s currency. The concepts of ’resource curse’ and ’Dutch disease’ are not new to natural resources exporting countries. Among the 51 countries classified as ’resource rich’ by the IMF, 29 are low - and lower - middle-income countries. It has been suggested that while benefiting from the abundance of natural resources, the exporting country’s currency also appreciates, making other sectors of the economy less competitive. For these developing countries whose export are dominated by their primary resources, fluctuations in the international price of the resources potentially can explain movements in their terms of trade and in the real exchange rate of their currencies.

Indeed, during the recent crude oil price drop, small oil exporting countries like Nigeria, Qazaqstan and Venezuela experienced fast real depreciation of their currencies. However, the earlier researchers could not find general empirical evidence supporting such relationship between the natural resource prices and the real exchange rate (see Cashin et al 2004, Dauvin 2014). This project will contribute to the literature by refining the empirical analysis for a better understanding of the ’commodity currency’ (the relationship between natural resources export and the real exchange rate of the exporting country’s currency). It will also modify the existing models of the real exchange rate and terms of trade (see for example Tokarick 2008) to guide the empirical analysis. The plan is to start with oil exporting countries and later to expand to other natural resources exporting countries.

Applicants interested in this research project should submit a more detailed research proposal (of a maximum of 2000 words) that expands on the broad outline given above.

Funding Notes

This project is funded by a University of Aberdeen Elphinstone Scholarship. An Elphinstone Scholarship covers the cost of tuition fees, whether Home, EU or Overseas.

Selection will be made on the basis of academic merit.

Related Subjects

How good is research at Aberdeen University in Economics and Econometrics?

FTE Category A staff submitted: 19.25

Research output data provided by the Research Excellence Framework (REF)

Click here to see the results for all UK universities

Email Now

Insert previous message below for editing? 
You haven’t included a message. Providing a specific message means universities will take your enquiry more seriously and helps them provide the information you need.
Why not add a message here
* required field
Send a copy to me for my own records.

Your enquiry has been emailed successfully




Cookie Policy    X