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Growth and exchange rate volatility: a panel data analysis

Author

Listed:
  • F. V. Vieira
  • M. Holland
  • C. Gomes da Silva
  • L. C. Bottecchia

Abstract

The aim of this article is to assess the role of Real Exchange Rate (RER) volatility on long-run economic growth for a set of 82 advanced and emerging economies, using a panel data set ranging from 1970 to 2009. With an accurate measure for exchange rate volatility, the results for the two-step system Generalized Method of Moments (GMM) panel growth models show that a more (less) volatile RER has a significant negative (positive) impact on economic growth. The results are also robust for different model specifications.

Suggested Citation

  • F. V. Vieira & M. Holland & C. Gomes da Silva & L. C. Bottecchia, 2013. "Growth and exchange rate volatility: a panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 45(26), pages 3733-3741, September.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3733-3741
    DOI: 10.1080/00036846.2012.730135
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