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This paper offers empirical evidence that real exchange rate volatility can have a signi.cant impact on the long … with relatively low levels of financial development, exchange rate volatility generally reduces growth, whereas for … the years 1960-2000; our results appear robust to time window, alternative measures of financial development and exchange …
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This paper reviews different econometric methodologies to assess the relationship between financial development and growth. It illustrates the identification problem, which is at the center of the finance and growth literature, using the example of a simple Ordinary Least Squares estimation. It...
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