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 language | English |
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Pages (from-to) | 126-129 |
Number of pages | 4 |
Journal | Economics Letters |
Volume | 120 |
Issue number | 1 |
DOIs | |
Publication status | Published - Jul 2013 |
Keywords
- Foreign direct investment
- Foreign portfolio investment
- International financial integration
- Real exchange rate
ASJC Scopus subject areas
- Finance
- Economics and Econometrics