Real exchange rate volatility, terms-of-trade shocks, and financial integration in primary-commodity exporting economies

Almukhtar Al-Abri

Economics Letters, 2013, vol. 120, issue 1, 126-129

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.

Keywords: Real exchange rate; International financial integration; Foreign direct investment; Foreign portfolio investment (search for similar items in EconPapers)
JEL-codes: F31 F32 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:120:y:2013:i:1:p:126-129

DOI: 10.1016/j.econlet.2013.04.003

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