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This study investigates the impact of exchange rate on aggregate output for a group of 10 transition economies using panel simultaneous equation model. The model is estimated by generalized two-stage least squares method. The annual data used in the study cover the period from 1998 to 2014 for selected transition countries which are: Azerbaijan, Kazakhstan, Kyrgyzstan, Belarus, Georgia, Moldova, Russia, Tajikistan, Ukraine and Latvia. The result of the study indicates that there is a relationship between exchange rate and macroeconomic variables under consideration. It can be concluded that ou ...More