IDEAS home Printed from https://ideas.repec.org/p/hhs/iuiwop/0810.html
   My bibliography  Save this paper

Oil Prices and Real Exchange Rate Movements in Oil-Exporting Countries: The Role of Institutions

Author

Listed:
  • Rickne, Johanna

    (Research Institute of Industrial Economics (IFN))

Abstract

Political and legal institutions affect the extent to which the real exchange rates of oil-exporting countries co-move with the oil price. In a simple theoretical model, strong institutions insulate real exchange rates from oil price volatility by generating a smooth pattern of fiscal spending over the price cycle. Empirical tests on a panel of 33 oil-exporting countries provide evidence that countries with high bureaucratic quality and strong and impartial legal systems have real exchange rates that co-move less with the oil price.

Suggested Citation

  • Rickne, Johanna, 2009. "Oil Prices and Real Exchange Rate Movements in Oil-Exporting Countries: The Role of Institutions," Working Paper Series 810, Research Institute of Industrial Economics, revised 15 Oct 2010.
    • Handle: RePEc:hhs:iuiwop:0810
    as

    Download full text from publisher

    File URL: https://www.ifn.se/Wfiles/wp/wp810.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Shahbaz & Aviral Kumar Tiwari & Mohammad Iqbal Tahir, 2015. "Analyzing time-frequency relationship between oil price and exchange rate in Pakistan through wavelets," Journal of Applied Statistics, Taylor & Francis Journals, vol. 42(4), pages 690-704, April.
    2. Kabbashi M. Suliman, 2012. "Understanding and Avoiding the Oil Curse in Sudan," Working Papers 735, Economic Research Forum, revised 2012.
    3. Lorna Katusiime, 2018. "Investigating Spillover Effects between Foreign Exchange Rate Volatility and Commodity Price Volatility in Uganda," Economies, MDPI, vol. 7(1), pages 1-17, December.
    4. Komain Jiranyakul, 2015. "Oil Price Volatility and Real Effective Exchange Rate: The Case of Thailand," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 574-579.
    5. Tayfur Bayat & Saban Nazlioglu & Selim Kayhan, 2015. "Exchange Rate and Oil Price Interactions in Transition Economies: Czech Republic, Hungary and Poland," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(3), pages 267-285, June.
    6. Dina Azhgaliyeva, 2013. "What Makes Oil Revenue Funds Effective," International Conference on Energy, Regional Integration and Socio-economic Development 6023, EcoMod.
    7. Tatiana K. Blokhina & Oksana A. Karpenko & Andrey V. Guirinskiy, 2016. "The Relationship between Oil Prices and Exchange Rate in Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 6(4), pages 721-726.

    More about this item

    Keywords

    Real Exchange Rate; Commodity Price; Institutions; Development;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:iuiwop:0810. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Elisabeth Gustafsson (email available below). General contact details of provider: https://edirc.repec.org/data/iuiiise.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.