Does trade openness influence the real effective exchange rate? New evidence from panel time-series

Using a dataset of 103 countries over the 1960-2011 period, we examine the relationship between the real effective exchange rate (REER), on the one hand, and trade openness, trade balance, the terms of trade, and factor productivity, on the other one. We use new econometric estimators that deal with...

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Detalles Bibliográficos
Autores principales: Dabós, Marcelo P., Gantman, Ernesto R.
Formato: Working Paper
Lenguaje:Inglés
Publicado: Universidad de Belgrano - Documentos CENFEM - Centro de Estudios en Negocios, Finanzas, Economía y Marketing- Escuela de Posgrado en Negocios 2017
Materias:
Real exchange rate
Trade openness
Trade balance
Terms of trade
Total factor productivity
Acceso en línea:http://repositorio.ub.edu.ar/handle/123456789/8553
Aporte de:
Aportado por : Repositorio Institucional - Universidad de Belgrano (UB) de Universidad de Belgrano .
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spelling I36-R142-123456789-85532017-12-06T05:01:46Z Does trade openness influence the real effective exchange rate? New evidence from panel time-series Dabós, Marcelo P. Gantman, Ernesto R. Real exchange rate Trade openness Trade balance Terms of trade Total factor productivity Using a dataset of 103 countries over the 1960-2011 period, we examine the relationship between the real effective exchange rate (REER), on the one hand, and trade openness, trade balance, the terms of trade, and factor productivity, on the other one. We use new econometric estimators that deal with the problems of potential endogeneity and cross-sectional dependence that are present in the data, while also allowing for cross-country heterogeneity in the parameters of interest. The findings of the study strongly support the hypothesis that an increase in trade openness produces a depreciation of the REER. The other variables considered in the analysis —factor productivity, trade balance, and terms of trade— do not have a statistically significant effect that is robust to different sample compositions and alternative statistical estimators. 2017-10-20T17:33:09Z 2017-10-20T17:33:09Z Jul- 2017 Working Paper http://repositorio.ub.edu.ar/handle/123456789/8553 en CENFEM;Nº 316 Universidad de Belgrano - Documentos CENFEM - Centro de Estudios en Negocios, Finanzas, Economía y Marketing- Escuela de Posgrado en Negocios
institution Universidad de Belgrano
institution_str I-36
repository_str R-142
collection Repositorio Institucional - Universidad de Belgrano (UB)
language Inglés
topic Real exchange rate
Trade openness
Trade balance
Terms of trade
Total factor productivity
spellingShingle Real exchange rate
Trade openness
Trade balance
Terms of trade
Total factor productivity
Dabós, Marcelo P.
Gantman, Ernesto R.
Does trade openness influence the real effective exchange rate? New evidence from panel time-series
topic_facet Real exchange rate
Trade openness
Trade balance
Terms of trade
Total factor productivity
description Using a dataset of 103 countries over the 1960-2011 period, we examine the relationship between the real effective exchange rate (REER), on the one hand, and trade openness, trade balance, the terms of trade, and factor productivity, on the other one. We use new econometric estimators that deal with the problems of potential endogeneity and cross-sectional dependence that are present in the data, while also allowing for cross-country heterogeneity in the parameters of interest. The findings of the study strongly support the hypothesis that an increase in trade openness produces a depreciation of the REER. The other variables considered in the analysis —factor productivity, trade balance, and terms of trade— do not have a statistically significant effect that is robust to different sample compositions and alternative statistical estimators.
format Working Paper
author Dabós, Marcelo P.
Gantman, Ernesto R.
author_facet Dabós, Marcelo P.
Gantman, Ernesto R.
author_sort Dabós, Marcelo P.
title Does trade openness influence the real effective exchange rate? New evidence from panel time-series
title_short Does trade openness influence the real effective exchange rate? New evidence from panel time-series
title_full Does trade openness influence the real effective exchange rate? New evidence from panel time-series
title_fullStr Does trade openness influence the real effective exchange rate? New evidence from panel time-series
title_full_unstemmed Does trade openness influence the real effective exchange rate? New evidence from panel time-series
title_sort does trade openness influence the real effective exchange rate? new evidence from panel time-series
publisher Universidad de Belgrano - Documentos CENFEM - Centro de Estudios en Negocios, Finanzas, Economía y Marketing- Escuela de Posgrado en Negocios
publishDate 2017
url http://repositorio.ub.edu.ar/handle/123456789/8553
work_keys_str_mv AT dabosmarcelop doestradeopennessinfluencetherealeffectiveexchangeratenewevidencefrompaneltimeseries
AT gantmanernestor doestradeopennessinfluencetherealeffectiveexchangeratenewevidencefrompaneltimeseries
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