[Home ] [Archive]   [ فارسی ]  
:: Main :: About :: Archive :: Search :: Submit :: Contact ::
Main Menu
Home::
Journal Information::
Articles archive::
For Authors::
For Reviewers::
Registration::
Contact us::
Site Facilities::
Webmail::
::
Search in website

Advanced Search
..
Receive site information
Enter your Email in the following box to receive the site news and information.
..
:: Volume 2, Issue 7 (6-2012) ::
2012, 2(7): 153-173 Back to browse issues page
The Effect of Capital Inflow on Real Exchange Rate in Developing Countries
Sajad Ebrahimi
Abstract:   (7574 Views)

  This study examines the theoretical and empirical aspects of the effect of capital inflow on exchange rate in 14 developing countries for the period 1980-2009. We developed an empirical model to investigate the effects of term of trade, real per capita output and trade openness on real exchange rate using d ynamic and heterogeneous panel and Pool Mean Group (PMG) methods. Estimation results show that various capital inflow channels have different effect on real exchange rate. For non-oil countries, only foreign aid inflow causes exchange rate appreciation in long-run and short-run and creates Dutch disease. In oil exporting countries, oil revenues and foreign direct investment cause exchange rate appreciation and create Dutch disease problems in the long-run. However, an increase in oil revenues in oil exporting countries causes more exchange rate appreciation than an increase in foreign direct investment.

Keywords: Capital inflow, Real Exchange Rate, Dutch disease, dynamic and heterogeneous panel.
     
Type of Study: Applicable | Subject: تجارت و مالیه بین الملل
Received: 2011/04/5 | Accepted: 2012/07/10 | Published: 2012/06/15
Send email to the article author

Add your comments about this article
Your username or Email:

CAPTCHA


XML   Persian Abstract   Print


Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

Ebrahimi S. The Effect of Capital Inflow on Real Exchange Rate in Developing Countries. Journal title 2012; 2 (7) :153-173
URL: http://jfm.khu.ac.ir/article-1-188-en.html


Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Volume 2, Issue 7 (6-2012) Back to browse issues page
فصلنامه تحقیقات مدلسازی اقتصادی Journal of Economic Modeling Research
Persian site map - English site map - Created in 0.08 seconds with 37 queries by YEKTAWEB 4645