Purchasing Power Parity during currency crises: A panel unit root test under structural breaks
Article Abstract:
The stationarity of real exchange rates is investigated using a panel of Asian and South and Latin American countries and applying a new panel unit root test that is robust to structural breaks because of currency crises. The results revealed that Asian countries experienced a flexible exchange rate, where as the South and Latin American countries for which the exchange rate was pegged to the U.S. dollar for a long time, the purchase power parity (PPP) broke down.
Publication Name: Review of World Economics: Weltwirtschaftliches Archiv
Subject: Economics
ISSN: 1610-2878
Year: 2005
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Investment and uncertainty in the G7
Article Abstract:
The impact of comprehensive range of potential sources of uncertainty on aggregate business investment across the G7 using Pooled Mean Group Estimation (PMGE) and GARCH methods to model uncertainty are assessed. A significant negative long-run effect from exchange rate volatility is found for the G7 and in poolable subgroups including all four larger EU countries.
Publication Name: Review of World Economics: Weltwirtschaftliches Archiv
Subject: Economics
ISSN: 1610-2878
Year: 2005
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The impact of short-and long-run exchange rate uncertainty on investment: a panel study of industrial countries
Article Abstract:
A study is conducted on investment behavior in industrialized countries (G7), and its dependency on exchange rate uncertainty.
Publication Name: Oxford Bulletin of Economics & Statistics
Subject: Economics
ISSN: 0305-9049
Year: 2005
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