Commodity Price Volatility, External Debt and Exchange Rate Regimes
Monoj Kumar Majumder (),
Mala Raghavan () and
Joaquin Vespignani
Authors registered in the RePEc Author Service: Monoj Kumar Majumder and
Monoj Kumar Majumder
Working Papers from HAL
Abstract:
This study explores the impact of commodity price volatility on external debt accumulation under fixed, managed and floating exchange rate regimes. We estimate dynamic panel data models for 97 countries from 1993 to 2016. Our empirical findings show that commodity price volatility increases external debt accumulation for commodity-exporting countries. This impact is three-times larger for countries with fixed exchange rate systems, compared to a managed floating exchange regime. Under floating exchange regimes, the impact of commodity price volatility on external debt is statistically insignificant. Our results suggest that the adoption of a floating exchange rate regime by commodity-exporting countries is critical to impair the effect of commodity price volatility on external debt accumulation.
Keywords: Commodity price volatility; external debt; commodity-exporting countries; exchange rate regime JEL classification: E62; F31; F34; G01 (search for similar items in EconPapers)
Date: 2020-12-17
New Economics Papers: this item is included in nep-mac
Note: View the original document on HAL open archive server: https://hal.science/hal-03078951v1
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://hal.science/hal-03078951v1/document (application/pdf)
Related works:
Working Paper: Commodity price volatility, external debt and exchange rate regimes (2020) 
Working Paper: Commodity price volatility, external debt and exchange rate regimes (2020) 
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:wpaper:hal-03078951
Access Statistics for this paper
More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().