Do commodity price volatilities impact currency misalignments in commodity-exporting countries?

This paper aims to investigate the relationship between misalignments of real effective exchange rates and real commodity price volatilities in a sample of 46 commodity-exporting countries by considering financial development as the transition variable. We first estimate currency misalignments as de...

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Main Author: Boubakri, Salem (author)
Other Authors: Guillaumin, Cyriac (author), Silanine, Alexandre (author)
Published: 2020
Subjects:
Online Access:https://shs.hal.science/halshs-02935658/document
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author Boubakri, Salem
author2 Guillaumin, Cyriac
Silanine, Alexandre
author2_role author
author
author_facet Boubakri, Salem
Guillaumin, Cyriac
Silanine, Alexandre
author_role author
dc.creator.none.fl_str_mv Boubakri, Salem
Guillaumin, Cyriac
Silanine, Alexandre
dc.date.none.fl_str_mv 2020-06-25T11:55:14Z
2020-06-25T11:55:14Z
2020
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv Economics Bulletin, vol 40(2), 2020, p1727-1739
https://shs.hal.science/halshs-02935658/document
dc.language.none.fl_str_mv en
dc.relation.none.fl_str_mv Economics Bulletin
2
40
1545-2921
dc.subject.none.fl_str_mv Currency misalignments
real commodity price volatility
financial development level
commodity-exporting countries
panel smooth transition model
dc.title.none.fl_str_mv Do commodity price volatilities impact currency misalignments in commodity-exporting countries?
dc.type.none.fl_str_mv Controlled Vocabulary for Resource Type Genres::text::periodical::journal::contribution to journal::journal article
description This paper aims to investigate the relationship between misalignments of real effective exchange rates and real commodity price volatilities in a sample of 46 commodity-exporting countries by considering financial development as the transition variable. We first estimate currency misalignments as deviations of the observed real effective exchange rates from their equilibrium values estimated using the behavioural equilibrium exchange rate (BEER) approach. Then, we rely on panel data and a smooth-transition regression model to estimate commodity price volatilities' non-linear impacts on currency misalignments. Our results indicate that the estimated coefficients are highly significant, and demonstrate that real commodity prices' volatility has a non-linear impact on currency misalignments depending on the country's degree of financial development.
id sorbonner_2a4e9c5ed58b7aa251d6dc57df4c549f
identifier_str_mv Economics Bulletin, vol 40(2), 2020, p1727-1739
language_invalid_str_mv en
network_acronym_str sorbonner
network_name_str Sorbonne University Abu Dhabi repository
oai_identifier_str oai:depot.sorbonne.ae:20.500.12458/404
publishDate 2020
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
spelling Do commodity price volatilities impact currency misalignments in commodity-exporting countries?Boubakri, SalemGuillaumin, CyriacSilanine, AlexandreCurrency misalignmentsreal commodity price volatilityfinancial development levelcommodity-exporting countriespanel smooth transition modelThis paper aims to investigate the relationship between misalignments of real effective exchange rates and real commodity price volatilities in a sample of 46 commodity-exporting countries by considering financial development as the transition variable. We first estimate currency misalignments as deviations of the observed real effective exchange rates from their equilibrium values estimated using the behavioural equilibrium exchange rate (BEER) approach. Then, we rely on panel data and a smooth-transition regression model to estimate commodity price volatilities' non-linear impacts on currency misalignments. Our results indicate that the estimated coefficients are highly significant, and demonstrate that real commodity prices' volatility has a non-linear impact on currency misalignments depending on the country's degree of financial development.2020-06-25T11:55:14Z2020-06-25T11:55:14Z2020Controlled Vocabulary for Resource Type Genres::text::periodical::journal::contribution to journal::journal articleapplication/pdfEconomics Bulletin, vol 40(2), 2020, p1727-1739https://shs.hal.science/halshs-02935658/documentenEconomics Bulletin2401545-2921oai:depot.sorbonne.ae:20.500.12458/4042023-12-05T10:14:35Z
spellingShingle Do commodity price volatilities impact currency misalignments in commodity-exporting countries?
Boubakri, Salem
Currency misalignments
real commodity price volatility
financial development level
commodity-exporting countries
panel smooth transition model
title Do commodity price volatilities impact currency misalignments in commodity-exporting countries?
title_full Do commodity price volatilities impact currency misalignments in commodity-exporting countries?
title_fullStr Do commodity price volatilities impact currency misalignments in commodity-exporting countries?
title_full_unstemmed Do commodity price volatilities impact currency misalignments in commodity-exporting countries?
title_short Do commodity price volatilities impact currency misalignments in commodity-exporting countries?
title_sort Do commodity price volatilities impact currency misalignments in commodity-exporting countries?
topic Currency misalignments
real commodity price volatility
financial development level
commodity-exporting countries
panel smooth transition model
url https://shs.hal.science/halshs-02935658/document