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

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Listed author(s):
  • Al-Abri, Almukhtar

Abstract

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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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 120 (2013)
Issue (Month): 1 ()
Pages: 126-129

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Handle: RePEc:eee:ecolet:v:120:y:2013:i:1:p:126-129
DOI: 10.1016/j.econlet.2013.04.003
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

Keywords: Real exchange rate; International financial integration; Foreign direct investment; Foreign portfolio investment;

Find related papers by JEL classification:

  • F31 - International Economics - - International Finance - - - Foreign Exchange
  • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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Cited by:

  1. Saif Al-Abri, Almukhtar, 2014. "How does terms-of-trade behavior shape international financial integration in primary-commodity exporting economies?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 33(C), pages 335-353.

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