International Financial Integration and Real Exchange Rate Long-Run Dynamics in Emerging Countries : Some Panel Evidence
The aim of this paper is to provide new empirical evidence on the impact of international financial integration on the long-run Real Exchange Rate (RER) in 39 developing countries belonging to three different geographical regions (Latin America, Asia and MENA). It covers the period 1979-2004, and carries out 'second-generation' tests for non-stationary panels. Several factors, including international financial integration, are shown to drive the long-run RER in emerging countries. It is found that the new financial environment characterised by international financial integration leads to a depreciation of the RER in the long run. Further, RER misalignments take the form of an under-valuation in most MENA countries and an over-valuation in most Latin American and Asian countries
Year of publication: |
[2009]
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Authors: | Caporale, Guglielmo Maria |
Other Persons: | Hadj Amor, Thouraya (contributor) ; Rault, Christophe (contributor) |
Publisher: |
[2009]: [S.l.] : SSRN |
Saved in:
freely available
Extent: | 1 Online-Ressource (21 p) |
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Series: | IZA Discussion Paper ; No. 4038 |
Type of publication: | Book / Working Paper |
Other identifiers: | 10.2139/ssrn.1351201 [DOI] |
Classification: | E31 - Price Level; Inflation; Deflation ; F0 - International Economics. General ; F31 - Foreign Exchange ; C15 - Statistical Simulation Methods; Monte Carlo Methods |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012764646