On the relationship between the value of the mark and German production |
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| Authors: | Peter Anker Mohsen Bahmani-Oskooee |
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| Institution: | 1. Department of Applied and International Economics , Massey University , New Zealand;2. School of Economics, University of Queensland , St Lucia QLD 4072, Australia |
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| Abstract: | This study employs Johansen's cointegration technique to determine the long-run relationship between exchange value of the DM and German production. It is shown that depreciation of the DM has a long-run expansionary impact on German production. This conclusion is based on a new method of selecting the order of VAR and the appropriate cointegrating vector simultaneously. |
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