Bastourre, Diego; Carrera, Jorge; Ibarlucia, Javier - In: Review of International Economics 17 (2009) 4, pp. 861-877
Foreign reserve accumulation is a widespread phenomenon of recent years, particularly among emerging economies. Using a panel of 136 countries for the period 1973-2003, we demonstrate the need of using both a dynamic specification of the reserve demand equation and the system GMM estimator....