Diallo, Ibrahima Amadou (2011): The effects of real exchange rate misalignment and real exchange volatility on exports.
Download (562kB) | Preview
This paper uses panel data cointegration techniques to study the impacts of real exchange rate misalignment and real exchange rate volatility on total exports for a panel of 42 developing countries from 1975 to 2004. The results show that both real exchange rate misalignment and real exchange rate volatility affect negatively exports. The results also illustrate that real exchange rate volatility is more harmful to exports than misalignment. These outcomes are corroborated by estimations on subsamples of Low-Income and Middle-Income countries.
|Item Type:||MPRA Paper|
|Original Title:||The effects of real exchange rate misalignment and real exchange volatility on exports|
|Keywords:||real effective exchange rate; misalignment; volatility; exports; pooled mean group estimator|
|Subjects:||F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics
F - International Economics > F3 - International Finance > F31 - Foreign Exchange
|Depositing User:||Ibrahima Amadou Diallo|
|Date Deposited:||23. Jul 2011 23:27|
|Last Modified:||18. Feb 2013 23:33|
Aghion, P., Bacchetta, P., Ranciere, R. and Rogoff, K.: 2009, Exchange Rate Volatility and Productivity Growth: The Role of Financial Development, Journal of Monetary Economics 56 (4), 494–513.
Cottani, J. A., Cavallo, D. F. and Khan, M. S.: 1990, Real Exchange Rate Behavior and Economic Performance in LDCs. Economic Development and Cultural Change 39.
Cushman, D. O.: 1993, The Effects of Real Exchange Rate Risk on International Trade. Journal of International Economics 15.
Edwards, S.: 1988, Exchange Rate Misalignment in Developing Countries, Baltimore: The Johns Hopkins University Press.
Edwards, S.: 1998, Capital Flows, Real Exchange Rates, and Capital Controls: Some Latin American Experiences, NBER Working Papers 6800.
Eichengreen, B.: 2008, The Real Exchange Rate and Economic Growth, Working Paper No. 4. Commission on Growth and Development, World Bank, Washington, Dc.
Gagnon, J. E.: 1993, Exchange Rate Variability and the Level of International Trade. Journal of International Economics 34(3-4).
Ghura, D. and Grennes, T. J.: 1993, The Real Exchange Rate and Macroeconomic Performances in Sub-Saharan Africa, Journal of Development Economics 42.
Ghura, D. and Grennes, T. J.: 1993, The Real Exchange Rate and Macroeconomic Performances in Sub-Saharan Africa. Journal of Development Economics 42.
Grobar, L. M.: 1993, The Effect of Real Exchange Rate Uncertainty on LDC Manufactured Exports. Journal of Development Economics 14.
Grobar, L. M.: 1993, The Effect of Real Exchange Rate Uncertainty on LDC Manufactured Exports, Journal of Development Economics 14.
Jian, L.: 2007, Empirical study on the influence of RMB exchange rate misalignment on China’s export-Based on the perspective of dualistic economic structure, Front. Econ. China 2(2), 224–236.
Jongwanich, J.: 2009, Equilibrium Real Exchange Rate, Misalignment, and Export Performance in Developing Asia, ADB Economics Working Paper Series No. 151.
Kao, C.: 1999, Spurious Regression and Residual-Based Tests for Cointegration in Panel Data, Journal of Econometrics 90, 1–44.
Korinek, A. and Serven, L.: 2010, Undervaluation through Foreign Reserve Accumulation: Static Losses, Dynamic Growth, Policy Research Working Paper 5250, World Bank, Washington, DC.
Levy-Yeyati, E. and Sturzenegger, F.: 2007, Fear of Appreciation, Policy Research Working Paper 4387, World Bank, Washington, DC.
Nabli, M. K. and Véganzonès-Varoudakis, M-A.: 2002, Exchange Rate Regime and Competitiveness of Manufactured Exports: The Case of MENA Countries, Working Paper, The World Bank.
Pedroni, P.: 1999, Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors, Oxford Bulletin of Economics and Statistics 61, 653–70.
Pesaran, M. H., Shin, Y. and Smith, R. P.: 1999, Pooled mean group estimation of dynamic heterogeneous panels, Journal of the American Statistical Association 94, 621-634.
Razin, O. and Collins, S. M. A.: 1997, Real Exchange Rate Misalignments and Growth, NBER Working Paper no. 6174.
Rodrik, D.: 2009, The Real Exchange Rate and Economic Growth, In Brookings Papers on Economic Activity, Fall 2008, ed. D. W. Elmendorf, N. G. Mankiw, and L. H. Summers, 365–412. Washington, DC: Brookings Institution.
Sekkat, K. and Varoudakis, A.: 2000, Exchange rate management and manufactured exports in Sub-Saharan Africa, Journal of Development Economics 61 (2000), 237–253.
Williamson, J.: 1994, Estimating Equilibrium Exchange Rates, Washington: Institute for International Economics.