Capital flows and real effective exchange rate in developing countries

Detalhes bibliográficos
Autor(a) principal: Damasceno , Aderbal Oliveira
Data de Publicação: 2023
Outros Autores: Nalesso Baptista , Livia
Tipo de documento: Artigo
Idioma: por
Texto Completo: https://revistas.ufrj.br/index.php/rec/article/view/62054
Resumo: This paper carries out a theoretical analysis and empirical investigation regarding the relationship between capital flows and real effective exchange rate in developing countries. With a sample of 63 developing countries during the period 1980-2010, equations for the real effective exchange rate will be estimated, including between the explanatory variables measures of capital flows. The results suggest that: (i) there is evidence that capital flows cause exchange rate appreciation; (ii) there is no evidence that the effect of capital flows on the real effective exchange rate depends on the level of institutional development in the countries; (iii) there is fragile evidence that the effect of capital flows on the real effective exchange rate depends on the level of financial development in the countries, so that a higher level of financial development mitigates currency appreciation caused by capital flows.
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spelling Capital flows and real effective exchange rate in developing countriesFluxos de capitais e taxa de câmbio real efetiva nos países em desenvolvimentoDamasceno , Aderbal OliveiraNalesso Baptista , LiviaThis paper carries out a theoretical analysis and empirical investigation regarding the relationship between capital flows and real effective exchange rate in developing countries. With a sample of 63 developing countries during the period 1980-2010, equations for the real effective exchange rate will be estimated, including between the explanatory variables measures of capital flows. The results suggest that: (i) there is evidence that capital flows cause exchange rate appreciation; (ii) there is no evidence that the effect of capital flows on the real effective exchange rate depends on the level of institutional development in the countries; (iii) there is fragile evidence that the effect of capital flows on the real effective exchange rate depends on the level of financial development in the countries, so that a higher level of financial development mitigates currency appreciation caused by capital flows.Este trabalho realiza uma análise teórica e uma investigação econométrica sobre as relações entre fluxos de capitais e taxa de câmbio real efetiva nos países em desenvolvimento. Usandoamostra de 63 países em desenvolvimento no período 1980-2010, serão estimadas equações para a taxa de câmbio real efetiva, incluindo, entre as variáveis explanatórias, medidas de fluxos de capitais. Os resultados sugerem que: (i) há evidências de que fluxos de capitais causam apreciação cambial; (ii) não há evidências de que o efeito dos fluxos de capitais sobre a taxa de câmbio real efetiva depende do nível de desenvolvimento institucional nos países; (iii) há evidências frágeis de que o efeito dos fluxos de capitais sobre a taxa de câmbio real efetiva depende do nível de desenvolvimento financeiro nos países, de maneira que um maior nível de desenvolvimento financeiro atenue a apreciação cambial causada pelos fluxos de capitais.IE-UFRJ2023-11-24info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArtigo avaliado pelos Paresapplication/pdfhttps://revistas.ufrj.br/index.php/rec/article/view/62054Revista de Economia Contemporânea; Rev. Econ. Contemp., v. 27, 2023Journal of Contemporary Economics; Rev. Econ. Contemp., v. 27, 20231980-5527porhttps://revistas.ufrj.br/index.php/rec/article/view/62054/39407Copyright (c) 2023 Aderbal Oliveira Damasceno , Livia Nalesso Baptista http://creativecommons.org/licenses/by/4.0oai:ojs.pkp.sfu.ca:article/620542023-11-24T18:31:08Z
dc.title.none.fl_str_mv Capital flows and real effective exchange rate in developing countries
Fluxos de capitais e taxa de câmbio real efetiva nos países em desenvolvimento
title Capital flows and real effective exchange rate in developing countries
spellingShingle Capital flows and real effective exchange rate in developing countries
Damasceno , Aderbal Oliveira
title_short Capital flows and real effective exchange rate in developing countries
title_full Capital flows and real effective exchange rate in developing countries
title_fullStr Capital flows and real effective exchange rate in developing countries
title_full_unstemmed Capital flows and real effective exchange rate in developing countries
title_sort Capital flows and real effective exchange rate in developing countries
dc.creator.none.fl_str_mv Damasceno , Aderbal Oliveira
Nalesso Baptista , Livia
author Damasceno , Aderbal Oliveira
author_facet Damasceno , Aderbal Oliveira
Nalesso Baptista , Livia
author_role author
author2 Nalesso Baptista , Livia
author2_role author
description This paper carries out a theoretical analysis and empirical investigation regarding the relationship between capital flows and real effective exchange rate in developing countries. With a sample of 63 developing countries during the period 1980-2010, equations for the real effective exchange rate will be estimated, including between the explanatory variables measures of capital flows. The results suggest that: (i) there is evidence that capital flows cause exchange rate appreciation; (ii) there is no evidence that the effect of capital flows on the real effective exchange rate depends on the level of institutional development in the countries; (iii) there is fragile evidence that the effect of capital flows on the real effective exchange rate depends on the level of financial development in the countries, so that a higher level of financial development mitigates currency appreciation caused by capital flows.
publishDate 2023
dc.date.none.fl_str_mv 2023-11-24
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Artigo avaliado pelos Pares
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv https://revistas.ufrj.br/index.php/rec/article/view/62054
url https://revistas.ufrj.br/index.php/rec/article/view/62054
dc.language.none.fl_str_mv por
language por
dc.relation.none.fl_str_mv https://revistas.ufrj.br/index.php/rec/article/view/62054/39407
dc.rights.none.fl_str_mv Copyright (c) 2023 Aderbal Oliveira Damasceno , Livia Nalesso Baptista
http://creativecommons.org/licenses/by/4.0
rights_invalid_str_mv Copyright (c) 2023 Aderbal Oliveira Damasceno , Livia Nalesso Baptista
http://creativecommons.org/licenses/by/4.0
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv IE-UFRJ
publisher.none.fl_str_mv IE-UFRJ
dc.source.none.fl_str_mv Revista de Economia Contemporânea; Rev. Econ. Contemp., v. 27, 2023
Journal of Contemporary Economics; Rev. Econ. Contemp., v. 27, 2023
1980-5527
repository.name.fl_str_mv
repository.mail.fl_str_mv
_version_ 1789436683450580992

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