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Growth and exchange rate volatility: a panel data analysis

  • F. V. Vieira
  • M. Holland
  • C. Gomes da Silva
  • L. C. Bottecchia

The aim of this article is to assess the role of Real Exchange Rate (RER) volatility on long-run economic growth for a set of 82 advanced and emerging economies, using a panel data set ranging from 1970 to 2009. With an accurate measure for exchange rate volatility, the results for the two-step system Generalized Method of Moments (GMM) panel growth models show that a more (less) volatile RER has a significant negative (positive) impact on economic growth. The results are also robust for different model specifications.

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File URL: http://hdl.handle.net/10.1080/00036846.2012.730135
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 45 (2013)
Issue (Month): 26 (September)
Pages: 3733-3741

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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3733-3741
DOI: 10.1080/00036846.2012.730135
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