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Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate, Jean-Louis Combes, Patrick Plane, Tidiane Kinda

This paper analyzes the impact of capital inflows and exchange rate flexibility on the real exchange rate in developing countries based on panel cointegration techniques. The results show that public and private flows are associated with a real exchange rate appreciation. Among private flows, portfolio investment has the highest appreciation effect-almost seven times that of foreign direct investment or bank loans-and private transfers have the lowest effect. Using a de facto measure of exchange rate flexibility, we find that a more flexible exchange rate helps to dampen appreciation of the real exchange rate stemming from capital inflows
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Composition of Capital Inflows, Exchange Rate Regime, and The Real Exchange Rate; A. Composition of Capital Inflows and the Real Exchange Rate; B. Exchange Rate Regime and the Real Exchange Rate; III. External Financing in Developing Countries; 1. External Financing in Developing Countries; 2. The Real Exchange Rate and Capital Inflows; IV. Econometric Model; 3. Index of Exchange Rate Flexibility; V. Econometric Results; A. Composition of Capital Inflows and the Real Exchange Rate
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (54 p.)
Specific Material Designation
Form Of Item

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