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From Fixed to Float: A Competing Risks Analysis

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  • Terence Tai-Leung Chong
  • Qing He
  • Wing Hong Chan

Abstract

This paper examines the determinants of the exchange rate regime of a country. A competing risks model is estimated. It is found that the way a country exits a fixed exchange rate regime is affected non-linearly by the duration of the peg. In addition, countries with a lower growth rate of reserves, higher occurrence of banking crises, higher concentration of trade and lower degree of capital-account liberalisation are more likely to experience a crisis-driven exit.

Suggested Citation

  • Terence Tai-Leung Chong & Qing He & Wing Hong Chan, 2016. "From Fixed to Float: A Competing Risks Analysis," International Economic Journal, Taylor & Francis Journals, vol. 30(4), pages 488-503, October.
    • Handle: RePEc:taf:intecj:v:30:y:2016:i:4:p:488-503
    DOI: 10.1080/10168737.2016.1204343
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    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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