EconPapers    
Economics at your fingertips  
 

Did Foreign Exchange Holding Influence Growth Performance During The Global Financial Crisis?

Jean-Pierre Allegret () and Audrey Allegret
Additional contact information
Audrey Allegret: LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon

Post-Print from HAL

Abstract: In a context of increased foreign exchange reserves holding from emerging and developing countries, this paper investigates the diminishing return of reserves holding assumption over the most severe phase of the global financial crisis (2008Q1-2010Q4). Relying on a Panel Smooth Transition Regression model, we highlight the differential effect of the accumulation of foreign exchange reserves for a set of financial vulnerabilities variables. Specifically, while reserve accumulation is effective above a critical threshold to cope with vulnerabilities related to the financial channel, we show that it becomes less effective beyond a certain threshold for domestic bank vulnerabilities.

Keywords: Panel Smooth Transition Regression model; reserve accumulation; Financial crisis; Financial vulnerabilities; Reserves accumulation (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mon
Date: 2019
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01820698
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in The World Economy, Wiley, 2019, 42 (3), pp.680-710. 〈10.1111/twec.12701〉

Downloads: (external link)
https://hal.archives-ouvertes.fr/hal-01820698/document (application/pdf)

Related works:
Journal Article: Did foreign exchange holding influence growth performance during the global financial crisis? (2019) Downloads
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:hal:journl:hal-01820698

DOI: 10.1111/twec.12701

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2019-04-19
Handle: RePEc:hal:journl:hal-01820698