Why Countries Accumulate Foreign Reserves? : A Dynamic Panel Approach

Foreign reserves accumulation is a widespread phenomenon in recent years, particularly among emerging economies. Using a panel of 139 countries for the period 1973-2003, we demonstrate the need of using both a dynamic specification of demand reserves and the GMM-System estimator. These improvements...

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Detalles Bibliográficos
Autores principales: Bastourre, Diego, Carrera, Jorge Eduardo, Ibarlucia, Javier
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2006
Materias:
Ciencias Económicas
foreign reserves
exchange rate regime
dynamic panel data
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/169029
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-169029
record_format dspace
spelling I19-R120-10915-1690292024-08-23T20:08:01Z http://sedici.unlp.edu.ar/handle/10915/169029 Why Countries Accumulate Foreign Reserves? : A Dynamic Panel Approach Bastourre, Diego Carrera, Jorge Eduardo Ibarlucia, Javier 2006-11 2006 2024-08-23T17:12:01Z en Ciencias Económicas foreign reserves exchange rate regime dynamic panel data Foreign reserves accumulation is a widespread phenomenon in recent years, particularly among emerging economies. Using a panel of 139 countries for the period 1973-2003, we demonstrate the need of using both a dynamic specification of demand reserves and the GMM-System estimator. These improvements change results found by previous studies on reserves determinants. Opportunity cost, exchange rate regime and both trade and financial volatility are no longer statistically significant. Openness, regional imitation, persistence, a U-shaped relationship between reserves and development and the global financial deregulation are the factors driving reserve hoarding. Results suggest that financial openness and economic development are more important determinants than exchange rate flexibility in order to explain recent reserves accumulation. La acumulación de reservas internacionales es en los años recientes un fenómeno generalizado, especialmente entre las economías emergentes. Usando un panel de 139 países para el período 1973-2003, demostramos la necesidad de emplear una especificación dinámica de la demanda de reservas y el estimador System GMM. Estos avances cambian los resultados encontrados por estudios previos. El costo de oportunidad, el esquema cambiario y la volatilidad comercial y financiera pierden significatividad estadística. La apertura, la imitación regional, la persistencia, el nivel de desarrollo y la desregulación financiera global son los principales factores que determinan la demanda. Los resultados sugieren que la apertura financiera y el desarrollo económico son factores más importantes que la flexibilidad del arreglo cambiario para explicar la reciente acumulación de reservas. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
foreign reserves
exchange rate regime
dynamic panel data
spellingShingle Ciencias Económicas
foreign reserves
exchange rate regime
dynamic panel data
Bastourre, Diego
Carrera, Jorge Eduardo
Ibarlucia, Javier
Why Countries Accumulate Foreign Reserves? : A Dynamic Panel Approach
topic_facet Ciencias Económicas
foreign reserves
exchange rate regime
dynamic panel data
description Foreign reserves accumulation is a widespread phenomenon in recent years, particularly among emerging economies. Using a panel of 139 countries for the period 1973-2003, we demonstrate the need of using both a dynamic specification of demand reserves and the GMM-System estimator. These improvements change results found by previous studies on reserves determinants. Opportunity cost, exchange rate regime and both trade and financial volatility are no longer statistically significant. Openness, regional imitation, persistence, a U-shaped relationship between reserves and development and the global financial deregulation are the factors driving reserve hoarding. Results suggest that financial openness and economic development are more important determinants than exchange rate flexibility in order to explain recent reserves accumulation.
format Objeto de conferencia
Objeto de conferencia
author Bastourre, Diego
Carrera, Jorge Eduardo
Ibarlucia, Javier
author_facet Bastourre, Diego
Carrera, Jorge Eduardo
Ibarlucia, Javier
author_sort Bastourre, Diego
title Why Countries Accumulate Foreign Reserves? : A Dynamic Panel Approach
title_short Why Countries Accumulate Foreign Reserves? : A Dynamic Panel Approach
title_full Why Countries Accumulate Foreign Reserves? : A Dynamic Panel Approach
title_fullStr Why Countries Accumulate Foreign Reserves? : A Dynamic Panel Approach
title_full_unstemmed Why Countries Accumulate Foreign Reserves? : A Dynamic Panel Approach
title_sort why countries accumulate foreign reserves? : a dynamic panel approach
publishDate 2006
url http://sedici.unlp.edu.ar/handle/10915/169029
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AT ibarluciajavier whycountriesaccumulateforeignreservesadynamicpanelapproach
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