Inflation targeting and private domestic investment in developing countries
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/25066 |
Resumo: | This paper analyzes the effect of inflation targeting on private domestic investment in developing countries. Using propensity scores matching methods, thus mitigating traditional self-selection problems, we find that inflation targeting has led to a 2.05 -2.53 percentage point increase in domestic investment in targeting countries compared to nontargeting ones. Estimates are economically meaningful and robust to various checks, notably sample changes, additional controls, alternative estimation methods, and falsification tests. A few heterogeneity features of the treatment effect are further highlighted, depending on some factors. Finally, we explore the main transmission channels and identify monetary policy credibility as the key driver of the regime’s effectiveness. |
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Inflation targeting and private domestic investment in developing countriesInflation targetingPrivate domestic investmentDeveloping countriesPropensity score matchingMonetary policy credibilityThis paper analyzes the effect of inflation targeting on private domestic investment in developing countries. Using propensity scores matching methods, thus mitigating traditional self-selection problems, we find that inflation targeting has led to a 2.05 -2.53 percentage point increase in domestic investment in targeting countries compared to nontargeting ones. Estimates are economically meaningful and robust to various checks, notably sample changes, additional controls, alternative estimation methods, and falsification tests. A few heterogeneity features of the treatment effect are further highlighted, depending on some factors. Finally, we explore the main transmission channels and identify monetary policy credibility as the key driver of the regime’s effectiveness.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaBambe, Bao-We-Wal2022-08-01T12:51:54Z2022-072022-07-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/25066engBambe, Bao-We-Wal (2022). "Inflation targeting and private domestic investment in developing countries". REM Working paper series, nº 0237/2022info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:54:41Zoai:www.repository.utl.pt:10400.5/25066Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:09:00.920691Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Inflation targeting and private domestic investment in developing countries |
title |
Inflation targeting and private domestic investment in developing countries |
spellingShingle |
Inflation targeting and private domestic investment in developing countries Bambe, Bao-We-Wal Inflation targeting Private domestic investment Developing countries Propensity score matching Monetary policy credibility |
title_short |
Inflation targeting and private domestic investment in developing countries |
title_full |
Inflation targeting and private domestic investment in developing countries |
title_fullStr |
Inflation targeting and private domestic investment in developing countries |
title_full_unstemmed |
Inflation targeting and private domestic investment in developing countries |
title_sort |
Inflation targeting and private domestic investment in developing countries |
author |
Bambe, Bao-We-Wal |
author_facet |
Bambe, Bao-We-Wal |
author_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Bambe, Bao-We-Wal |
dc.subject.por.fl_str_mv |
Inflation targeting Private domestic investment Developing countries Propensity score matching Monetary policy credibility |
topic |
Inflation targeting Private domestic investment Developing countries Propensity score matching Monetary policy credibility |
description |
This paper analyzes the effect of inflation targeting on private domestic investment in developing countries. Using propensity scores matching methods, thus mitigating traditional self-selection problems, we find that inflation targeting has led to a 2.05 -2.53 percentage point increase in domestic investment in targeting countries compared to nontargeting ones. Estimates are economically meaningful and robust to various checks, notably sample changes, additional controls, alternative estimation methods, and falsification tests. A few heterogeneity features of the treatment effect are further highlighted, depending on some factors. Finally, we explore the main transmission channels and identify monetary policy credibility as the key driver of the regime’s effectiveness. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-08-01T12:51:54Z 2022-07 2022-07-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/25066 |
url |
http://hdl.handle.net/10400.5/25066 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Bambe, Bao-We-Wal (2022). "Inflation targeting and private domestic investment in developing countries". REM Working paper series, nº 0237/2022 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799131184143269888 |