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dc.contributor.authorPetreski, Marjanen_US
dc.date.accessioned2009-12-07en_US
dc.date.accessioned2009-12-08T15:26:13Z-
dc.date.available2009-12-08T15:26:13Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/28947-
dc.description.abstractThe aim of this paper is to empirically investigate the relationship between exchange-rate regime and economic growth, building on underlying theoretical examination and shortcomings of empirical literature. Channels through which regime might influence growth could be distinguished at: i) level of uncertainty imposed by certain regime, which than affects trading and investment decisions; ii) regime as shock absorber; iii) its linkage to productivity growth, which usually interferes with financial development. Empirical research offers divergent result though and is criticized because of: measurement error in regimes’ classification; appropriateness of growth framework; endogeneity of exchange-rate regime and/or other regressors; Lucas critique; sample-selection bias and survivor bias. Applying dynamic system-GMM panel estimation on 169 countries over the period 1976-2006 and addressing all shortcoming of the empirical literature, this paper finds that the exchange-rate regime is not statistically significant in explaining growth. The conclusion is robust to dividing the sample on developing versus advanced countries and considering two sub-periods. In all specifications, the exchange-rate regime does not even approach conventional significance levels. Observation de-facto versus de-jure regime matters neither. No empirical grounds were established that coefficients in the regression suffer the Lucas critique. Hence, the main conclusion is that, as nominal variable, the exchange rate regime does not have explanatory power over growth.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofseriesEconomics Discussion Papers 2009-49en_US
dc.subject.jelE42en_US
dc.subject.jelF31en_US
dc.subject.ddc330en_US
dc.subject.keywordExchange rate regimeen_US
dc.subject.keywordeconomic growthen_US
dc.subject.stwWechselkurssystemen_US
dc.subject.stwWirtschaftswachstumen_US
dc.subject.stwPanelen_US
dc.subject.stwSchätzungen_US
dc.subject.stwAnlageverhaltenen_US
dc.titleAnalysis of exchange-rate regime effect on growth: theoretical channels and empirical evidence with panel dataen_US
dc.typeWorking Paperen_US
dc.identifier.ppn614392748en_US
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.en-
dc.identifier.repecRePEc:zbw:ifwedp:200949-
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