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Real exchanges rates, commodity prices and structural factors in developing countries

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  • Bodart, Vincent
  • Candelon, Bertrand
  • Carpantier, Jean-Francois

Abstract

This paper provides new empirical evidence about the relationship that may exist between real exchange rates and commodity prices in developing countries that are specialized in the export of a main primary commodity. It investigates how structural factors like the exchange rate regime, the degree of financial and trade openness, the degree of export concentration and the type of the commodity exports affect the strength of the commodity price-real exchange rate dependence.

Suggested Citation

  • Bodart, Vincent & Candelon, Bertrand & Carpantier, Jean-Francois, 2015. "Real exchanges rates, commodity prices and structural factors in developing countries," Journal of International Money and Finance, Elsevier, vol. 51(C), pages 264-284.
    • Handle: RePEc:eee:jimfin:v:51:y:2015:i:c:p:264-284
    DOI: 10.1016/j.jimonfin.2014.11.021
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    More about this item

    Keywords

    Real exchange rates; Commodity prices; Exchange rate regime; Financial openness; Dynamic panel analysis;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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