The real exchange rate, capital inflows and inflation: Sri Lanka 1970–1982

1985 ◽  
Vol 121 (4) ◽  
pp. 682-702 ◽  
Author(s):  
Deepak Lal
Keyword(s):  
Exchange Rate ◽  
Sri Lanka ◽  
Real Exchange Rate ◽  
Capital Inflows ◽  
The Real

scholarly journals Net capital flows to and the real exchange rate of Western Balkan countries

2015 ◽  
Vol 60 (205) ◽  
pp. 31-52 ◽  
Author(s):  
Hubert Gabrisch
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Capital Flows ◽  
Unit Labour Cost ◽  
Labour Cost ◽  
Capital Inflows ◽  
The Real ◽  
Relative Unit ◽  
Inflation Differential ◽  
Balkan Countries

This paper uses Granger causality tests to assess the linkages between changes in the real exchange rate and net capital inflows using the example of Western Balkan countries, which have suffered from low competitiveness and external imbalances for many years. The real exchange rate is a measure of a country?s price competitiveness, and the paper uses two concepts: relative unit labour cost and relative inflation differential. The sample consists of six Western Balkan countries for the period 1996-2012, relative to the European Union (EU). The main finding is that changes in the net capital flows precede changes in relative unit labour costs and not vice versa. Also, there is evidence that net capital flows affect the inflation differential of countries, although to a less discernible extent. This suggests that the increasing divergence in the unit labour cost between the EU and Western Balkan countries up to the global financial crisis was at least partly the result of net capital inflows. The paper adds to the ongoing debate on improving cost competitiveness through wage restrictions as the main vehicle to avert the accumulation of current account imbalances. It shows the importance of changes in the exchange rate regime, reform of the interaction between the financial and the real sector, and financial supervision and structural change.

scholarly journals Fiscal imbalances, capital inflows, and the real exchange rate: The case of Turkey

1997 ◽  
Vol 41 (3-5) ◽  
pp. 819-825 ◽  
Author(s):  
Pierre-Richard Agénor ◽  
C.John McDermott ◽  
Murat Üçer
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Capital Inflows ◽  
The Real

scholarly journals Fiscal Imbalances, Capital Inflows, and the Real Exchange Rate: The Case of Turkey

1997 ◽  
Vol 97 (1) ◽  
pp. 1 ◽  
Author(s):  
E. Murat Ucer ◽  
C. John McDermott ◽  
Pierre-Richard Agénor ◽  
◽  
◽  
...  
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Capital Inflows ◽  
The Real

scholarly journals Petróleo y Enfermedad Holandesa en el Ecuador, 2001 – 2015

UDA AKADEM ◽  
2021 ◽  
pp. 158-193
Author(s):  
Silvia Raquel Mejía-Matute ◽  
Luis Gabriel Pinos-Luzuriaga
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Descriptive Analysis ◽  
Dutch Disease ◽  
Capital Inflows ◽  
The Real ◽  
Independent Variables ◽  
Oil Boom ◽  
Palabras Clave ◽  
Nontradable Goods

La literatura de la economía del desarrollo, considera que un país con auge por hidrocarburos sufre de la enfermedad holandesa cuando el incremento del ingreso de capitales por el sector en auge, las remesas o la inversión extranjera, producen apreciación del tipo de cambio real que provoca desindustrialización. Los objetivos de esta investigación fueron establecer si la economía ecuatoriana sufrió del mal holandés en el segundo auge petrolero del Ecuador, entre el periodo 2001-2014 y determinar las variables que explican estos síntomas. Para ello, se realiza un análisis descriptivo basado en información del Banco Central y se construyen dos modelos econométricos con series de tiempo, donde las variables independientes son el tipo de cambio real y el peso de los bienes transables y los bienes no transables. Las variables independientes son el precio del petróleo, el gasto público, el índice de precios del consumidor y las exportaciones manufactureras. Los resultados muestran que la economía ecuatoriana presentó síntomas del mal holandés como el estancamiento de la industria, pero, no existe suficiente evidencia empírica que permita aseverar que fue causado por la apreciación del tipo de cambio real y el incremento de los precios del petróleo. Palabras clave: Enfermedad Holandesa, Petróleo, Tipo de Cambio Real, Transables y No Transables. Abstract The literature on development economics considers that a country with a hydrocarbon boom suffers from the Dutch Disease when the increase in capital inflows by the booming sector, remittances or foreign investment produces appreciation of the real exchange rate that causes deindustrialization. The objectives of this research were to establish if the Ecuadorian economy suffered from Dutch disease in the second oil boom in Ecuador between the period 2001 - 2014 and to determine the variables that explain these symptoms. For this, a descriptive analysis based on information from the Central Bank is carried out and two econometric models with time series are constructed, where the independent variables are the real exchange rate and the weight of tradable goods and nontradable goods. The independent variables are the price of oil, public spending, consumer´s price index and manufacturing exports. The results show that the Ecuadorian economy presented symptoms of the Dutch disease such as the stagnation of the industry, but there is not enough empirical evidence to assert that it was caused by the appreciation of the real exchange rate and the increase in oil prices.Keywords: Dutch Disease, Oil, Real Exchange Rate, Tradable and Non-Tradable

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