What factors influence the balance of payment in a country?
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Factors that influence the balance of payment in a country include exchange rate, inflation rate, interest rate, foreign exchange rate, domestic credit, money supply, real GDP growth, real effective exchange rate (REER), energy prices, growth in emerging market economies, and stock market prices. Exchange rate and inflation rate have a statistically significant negative impact on balance of payment . Inflation and foreign exchange rate have a positive effect, while interest rate has a negative effect on balance of payment . Inflation has no significant impact on balance of payment . Real GDP growth, REER appreciation, energy prices, and growth in emerging market economies and other industrial countries explain much of the short-term variation in the balance of payment . Exchange rate fluctuations and real exchange rate positively impact the balance of payment, while inflation and trade openness negatively impact it .
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Open access•Journal Article | The factors that influence the balance of payment in a country are the inflation rate, interest rate, and foreign exchange rate, according to the provided paper. |
| The factors that influence the balance of payments in the U.S. include changes in real GDP, real effective exchange rate (REER), energy prices, growth in emerging market economies, and other industrial countries. | |
| The factors that influence the balance of payment in Nigeria, according to the paper, include exchange rate fluctuations, inflation rate, trade openness, and the real exchange rate. | |
Open access•Journal Article | The factors that influence the balance of payment in Nigeria are inflation rate, unemployment rate, efficient expenditure switching policy, devaluation of currency, direct controls, effective capital movement adjustment, and efficient management of inflationary pressure. |
Open access•Journal Article | The factors that influence the balance of payment in Nigeria, according to the paper, include exchange rate, inflation rate, domestic credit, money supply, real GDP, and trade openness. |
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