Efectos y canales de transmisión del tipo de cambio sobre la producción sectorial en Colombia

Jorge Quintero and Johan Ruíz Celis
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Johan Ruíz Celis: Instituto de Estudios Económicos del Caribe. Universidad del Norte. Barranquilla, Colombia

Cuadernos de Economía - Spanish Journal of Economics and Finance, 2019, vol. 42, issue 118, 49-58

Abstract: This paper estimates the effect of exchange rate on production in Colombia´s economic sectors for the period 2000-2015. In order to achieve this goal, a panel data regression model is estimated using the Fully Modified Ordinary Least Square (FMOLS) approach. This technique modifies least squares to account for endogeneity and serial correlation effects that result from cointegration between variables. This research also tries to identify the demand and supply channels that are relevant in the transmission of the effects of exchange rate on sectoral production. The results show that the exchange rate has a significant and positive effect on production in Colombia with an elasticity around 0,7, and the construction and mining sectors being the most responsive to changes in the exchange rate. It was also found that the level of international trade (aggregate demand channel) is the main explanation for the sectoral differences in the impact of the exchange rate on production.

Keywords: Exchange rate; Sectoral production; Fully modified ols (search for similar items in EconPapers)
JEL-codes: C23 E23 F41 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:cud:journl:v:42:y:2019:i:118:p:49-58

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