Real exchange rate volatility, terms-of-trade shocks, and financial integration in primary-commodity exporting economies

Using a panel of 53 primary-commodity exporting countries, we show that greater international financial integration reduces the impact of terms-of-trade shocks on real exchange rate volatility. This reduction is larger when we define financial integration as foreign direct investment.

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Year of publication:	2013
Authors:	Al-Abri, Almukhtar
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 120.2013, 1, p. 126-129
Publisher:	Elsevier
Subject:	Real exchange rate \| International financial integration \| Foreign direct investment \| Foreign portfolio investment

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Type of publication:	Article
Classification:	F31 - Foreign Exchange ; F32 - Current Account Adjustment; Short-Term Capital Movements
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010665673