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

Research output: Contribution to journalArticle

6 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

Fingerprint

Financial integration
Terms of trade shocks
Primary commodities
Real exchange rate volatility
Foreign direct investment
Exporting
International financial integration

Keywords

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

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Cite this

@article{61b40a31a12f4529b98e638a581b3eb4,
title = "Real exchange rate volatility, terms-of-trade shocks, and financial integration in primary-commodity exporting economies",
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.",
keywords = "Foreign direct investment, Foreign portfolio investment, International financial integration, Real exchange rate",
author = "Almukhtar Al-Abri",
year = "2013",
month = "7",
doi = "10.1016/j.econlet.2013.04.003",
language = "English",
volume = "120",
pages = "126--129",
journal = "Economics Letters",
issn = "0165-1765",
publisher = "Elsevier",
number = "1",

}

TY - JOUR

T1 - Real exchange rate volatility, terms-of-trade shocks, and financial integration in primary-commodity exporting economies

AU - Al-Abri, Almukhtar

PY - 2013/7

Y1 - 2013/7

N2 - 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.

AB - 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.

KW - Foreign direct investment

KW - Foreign portfolio investment

KW - International financial integration

KW - Real exchange rate

UR - http://www.scopus.com/inward/record.url?scp=84877323697&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84877323697&partnerID=8YFLogxK

U2 - 10.1016/j.econlet.2013.04.003

DO - 10.1016/j.econlet.2013.04.003

M3 - Article

AN - SCOPUS:84877323697

VL - 120

SP - 126

EP - 129

JO - Economics Letters

JF - Economics Letters

SN - 0165-1765

IS - 1

ER -