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

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

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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File URL: http://www.sciencedirect.com/science/article/pii/S0165176513001742
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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

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  1. Cashin, Paul & Cespedes, Luis F. & Sahay, Ratna, 2004. "Commodity currencies and the real exchange rate," Journal of Development Economics, Elsevier, vol. 75(1), pages 239-268, October.
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