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Theoretical and Applied Economics
No. 3 / 2026 (648), Autumn

The relationship between exchange rates, trade and economic growth in the Philippine context

Jason C. PATALINGHUG
Southern Connecticut State University, USA

Abstract. This paper attempts to establish the relationship of between economic growth and movements in foreign exchange rates. It also tries to formulate alternative exchange rate policies that would help remove distortions in the foreign exchange rate and the relative price of products in the world market. The policies that will be recommended at the end of this paper will also focus on increasing the competitiveness of the external sector.
It is hoped that this study will shed new light into the factors that affect economic growth in the Philippines. This paper aims to contribute to the literature on international trade and exchange rates and help inform public policy on how to deal with those issues.

Keywords: economic growth, exchange rates, trade.

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