Comportamiento del tipo de cambio real y desempeño económico en México

Antonio Avalos and Fausto Hernandez-Trillo

Economía Mexicana NUEVA ÉPOCA, 1995, vol. IV, issue 2, 239-263

Abstract: An ARCH (Autoregressive Conditional Heteroscedasticity) model is used to obtain the variances over time for the real exchange rata (RER) (peso/dollar) in Mexico. Then a model is constructed to establish the relationship between the RER variability and exports and Mexican GDP, respectively. A negative relationship is found which suggests that not only the level but the stability of the RER is important in explaining economic performance in an open economy. Furthermore, an alternative measure of RER misalignment is developed which, in turn, is shown to be negatively related with economic performance in Mexico. These results suggest that more stable exchange rate regimes should be adopted to create an environment suitable for economic growth.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.economiamexicana.cide.edu/num_anteriores/IV-2/02_AVALOS_239-263.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:emc:ecomex:v:4:y:1995:i:2:p:239-263

Access Statistics for this article

Economía Mexicana NUEVA ÉPOCA is currently edited by Juan Rosellón

More articles in Economía Mexicana NUEVA ÉPOCA from CIDE, División de Economía Contact information at EDIRC.
Bibliographic data for series maintained by Ricardo Tiscareño ( this e-mail address is bad, please contact ).