A panel data investigation of real exchange rate misalignment and growth

Vieira, F.V. and MacDonald, R. (2012) A panel data investigation of real exchange rate misalignment and growth. Estudos Econômicos, 42(3), pp. 433-456. (doi:10.1590/S0101-41612012000300001)

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Abstract

The paper investigates the role of real exchange rate misalignment on long-run growth is the set of ninety countries using time series data from 1980 to 2004. We first estimate a panel data model (fixed and random effects) for the real exchange rate in order to produce Estimates of the equilibrium real exchange rate and this is then used to construct Measures of real exchange rate misalignment. We provide an alternative set of RER misalignment of Estimates using panel cointegration methods. The results for the two-step System GMM panel growth models Indicate That the coefficients for real exchange rate misalignment are positive for different model specification and samples, Which That means the more depreciated (appreciated) real exchange rate helps (harms) long-run growth . The Estimated coefficients are higher for Developing and emerging countries.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:MacDonald, Professor Ronald
Authors: Vieira, F.V., and MacDonald, R.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Estudos Econômicos
Journal Abbr.:Estud. Econ.
ISSN:0101-4161
ISSN (Online):1980-5357

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