Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153363
Authors: 
Arratibel, Olga
Furceri, Davide
Martin, Reiner
Year of Publication: 
2008
Series/Report no.: 
ECB Working Paper 929
Abstract: 
This paper analyzes the relation between exchange rate volatility and several macroeconomic variables, namely real per capita output growth, the credit cycle, the stock of inward foreign direct investment (FDI) and the current account balance, in the Central and Eastern European EU Member States. Using panel estimations for the period between 1995 and 2006, we find that lower exchange rate volatility is associated with higher growth (for relatively less financially developed economies), higher stocks of FDI (for relatively more open economies), higher current account deficits, and a more volatile development of the credit to GDP ratio.
Subjects: 
Catching-up
Convergence
credit
current account
EU
Exchange rate volatility
FDI
Growth
JEL: 
F3
F4
F5
Document Type: 
Working Paper

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