Real Exchange Rates Dynamic and Debt Sustainability in Developing Countries

2005 ◽  
Author(s):  
Babacar Sene
Keyword(s):  
Developing Countries ◽  
Exchange Rates ◽  
Real Exchange Rates ◽  
Debt Sustainability

scholarly journals Do emigrants’ remittances cause Dutch disease? A developing countries case study

2019 ◽  
Vol 30 (1) ◽  
pp. 59-76
Author(s):  
Burçak Polat ◽  
Antonio Rodríguez Andrés
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Real Exchange Rate ◽  
Real Exchange Rates ◽  
Development Aid ◽  
Dutch Disease ◽  
The Real ◽  
Trade Competitiveness ◽  
Remittance Flows

Although the positive socio-economic effects of remittances for recipient countries in the short term are unmistakable, inflows of remittances may at the same time exert adverse effects on the trade competitiveness of an economy, by appreciating the real exchange rate. This phenomenon is characterised as an instance of the ‘Dutch disease’ – the negative impact of windfall revenue inflows on the competitiveness of other tradable sectors and hence on overall economic growth. While the real effect of workers’ remittances on real exchange rates in a recipient economy is still a controversial issue, several studies have analysed evidence for the existence of the ‘Dutch disease’ phenomenon in various sets of countries. The main objective of this study is to examine whether remittance flows have had any adverse effect on the international trade competitiveness of a selected group of developing countries during the period from 1995 to 2014. Using a one-step system Generalised Method of Moments specification within a simultaneous equation approach, it shows that remittance flows depreciate the real exchange rate at their levels and that the lagged value of remittances create the Dutch disease for this country group. In addition, we confirm that while trade openness and world real interest rates contribute to a depreciation in real exchange rates, gross domestic product per capita and net Official Development Aid inflows tend to appreciate real exchange rates. A policy implication is that trade liberalisation policies that lower tariff rates on capital imports and new export-oriented incentive programmes should be accompanied by measures designed to prevent appreciation in the real exchange rate: steps in this direction such as recent macroeconomic and prudential capital flow management initiatives are briefly referenced. JEL Codes: F20, F21, F22, F23

Real Exchange Rates in Developing Countries: Are Balassa-Samuelson Effects Present?

2004 ◽  
Vol 04 (188) ◽  
pp. 1 ◽  
Author(s):  
Mohsin S. Khan ◽  
Ehsan U. Choudhri ◽  
◽  
Keyword(s):  
Developing Countries ◽  
Exchange Rates ◽  
Real Exchange Rates

Deindustrialization and the Demand for Protection

2021 ◽  
pp. 1-18
Author(s):  
Heather-Leigh Kathryn Ba ◽  
Tyler Coleman
Keyword(s):  
Developing Countries ◽  
Exchange Rates ◽  
Developing Economies ◽  
Real Exchange Rates ◽  
Industrialized Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
Advanced Economies ◽  
The Business Cycle

Abstract Current explanations of demand for anti-dumping protections focus on the role of the business cycle, and fluctuations in real exchange rates. However, empirical evidence supporting these explanations is based primarily on the experience of industrialized countries. Here, we examine anti-dumping petitions in a broader sample of thirty-four industrialized and middle income countries from 1978–2015. We also propose a new determinant of demand for anti-dumping petitions—changes in the pattern of industrial production between developed and developing economies over this period have contributed to deindustrialization in advanced economies and premature industrialization some developing countries. These changes threaten established industries and motivate them to demand protection.

scholarly journals Nonlinearities in the real exchange rates: new evidence from developed and developing countries

2018 ◽  
Vol 51 (25) ◽  
pp. 2731-2743
Author(s):  
Yamin Ahmad ◽  
Ming Chien Lo ◽  
Olena Staveley-O’Carroll
Keyword(s):  
Developing Countries ◽  
Exchange Rates ◽  
Real Exchange Rates ◽  
The Real ◽  
New Evidence
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