Augmented Dickey-Fuller regressions on pooled (but not individual) real exchange rates for the post-1973 period consistently reject the unit root null, even after accounting for cross-sectional dependence. The inference that the series is stationary, however, is not necessarily correct, because...

A model of portfolio capital flows is estimated for nine developing countries over the period 1980-96. The results suggest that domestic factors (changes in the investment climate in developing countries as measured by the inflation-adjusted share price index) have been more important than...