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Exchange Rate Undervaluation, Financial Development and Growth

Khalid Sekkat

No 742, Working Papers from Economic Research Forum

Abstract: This paper examines the interaction between financial development and the impact of undervaluation on growth. No evidence is found of a positive effect of undervaluation on growth even with a well-developed financial sector. This conclusion survives different robustness tests such as alternative indicators of financial development, delay in the effect of undervaluation and alternative non-linear assumptions.

Pages: 31
Date: 2012-12, Revised 2012-12
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Citations: View citations in EconPapers (2)

Published by The Economic Research Forum (ERF)

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