A multilateral currency union removes the intraregional exchange rates but not the union rate variability with the rest of the world. The intraregional exchange rate variability is thus latent. A two-step procedure is developed to measure the variability. The measured variables are used to model...

The foreign trade statistics of developing countries are relatively abundant and generally considered more reliable than data on their national accounts. This study reports the results of an accuracy test applied to export and import data from five developing countries (Indonesia, Malaysia, the...