Real exchange rate volatility, terms-of-trade shocks, and financial integration in primary-commodity exporting economies

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7 Citations (Scopus)

Abstract

Using a panel of 53 primary-commodity exporting countries, we show that greater international financial integration reduces the impact of terms-of-trade shocks on real exchange rate volatility. This reduction is larger when we define financial integration as foreign direct investment.

Original languageEnglish
Pages (from-to)126-129
Number of pages4
JournalEconomics Letters
Volume120
Issue number1
DOIs
Publication statusPublished - Jul 2013

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Keywords

  • Foreign direct investment
  • Foreign portfolio investment
  • International financial integration
  • Real exchange rate

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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