4 RESULTS ..................................................................................................

58
4.1 Hypothesis 1 ...................................................................................... 58
4.1.1 Pretesting ..................................................................................... 58
4.1.2 TYDL VAR(p) Lag Length ......................................................... 61
4.1.3 TYDL Granger Non-Causality (MWALD) Test Results ............ 67
4.2 Hypothesis 2 ...................................................................................... 86
4.2.1 Brazil ........................................................................................... 90
4.2.2 Russia .......................................................................................... 93
4.2.3 India ............................................................................................. 96
4.2.4 China ........................................................................................... 99
4.2.5 South Africa .............................................................................. 102
4.2.6 Honduras ................................................................................... 105
4.2.7 Turkey ....................................................................................... 108
4.3 Comparison of Estimated Exchange Rates Volatility ..................... 111

5 SUMMARY AND CONCLUSIONS ......................................................119

5.1 Summary ......................................................................................... 119
5.2 Findings and Discussion.................................................................. 121
5.3 Implications ..................................................................................... 130
5.4 Policy Recommendations ................................................................ 132
5.5 Limitations of the Study and Future Research ................................ 135

REFERENCES……………………………………………………………………..137

APENDICES
A. Unit Root Tests in Log Levels………………………………….......145

B. Unit Root Tests in Log First Differences…………………………...158

C. Unit Root Tests in Log Second Differences……………………......163

VITA………………………………………………………………………………..167