Let it float: new empirical evidence on de facto exchange rate regimes and growth in Latin America

This paper reassesses the evidence presented in Levy-Yeyati and Sturzenegger (LYS) (2003) on the relation between exchange rate regimes and economic growth. We use their de facto classification as well as their database, in order to gain robustness and efficiency...

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Main Authors: Bermúdez, Cecilia, Dabús, Carlos
Format: Online
Language:spa
Published: EdiUNS 2015
Online Access:https://revistas.uns.edu.ar/ee/article/view/729
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spelling oai:oai.revistas.uns.edu.ar:article-7292021-08-17T23:12:00Z Let it float: new empirical evidence on de facto exchange rate regimes and growth in Latin America Bermúdez, Cecilia Dabús, Carlos Exchange rate regimes Economic growth System GMM Regímenes Cambiarios Crecimiento Económico System GMM This paper reassesses the evidence presented in Levy-Yeyati and Sturzenegger (LYS) (2003) on the relation between exchange rate regimes and economic growth. We use their de facto classification as well as their database, in order to gain robustness and efficiency in the results. We run System GMM estimations. Additionally, we focus on Latin American countries for the period 1974-2004. Differently to LYS, our evidence indicates that exchange rate regimes are not significant to explain economic growth, both in a worldwide sample of countries and particularly in Latin America. However, in this region flexible regimes appear to have more advantages in terms of the role of the determinants of economic growth in relation to the other exchange regimes. El trabajo reconsidera la evidencia encontrada por Levy-Yeyati y Sturzenegger (LYS) (2003) sobre la relación entre regímenes cambiarios y crecimiento económico. Utilizamos su clasificación de facto así como su base de datos, a fin de ganar robustez y eficiencia en los resultados. Aplicamos el método System GMM. Además, el trabajo se realiza para una amplia muestra de países así como para el caso de Latinoamérica para el periodo 1974-2004. A diferencia de LYS, nuestra evidencia indica que los regímenes cambiarios no son significativos para explicar el crecimiento económico, tanto para una amplia muestra de países como para Latinoamérica en particular. Sin embargo, en esta región los regímenes flexibles parecen tener más ventajas en términos del rol de los determinantes del crecimiento económico en relación a los otros regímenes cambiarios. EdiUNS 2015-11-11 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article Artículo evaluado por pares application/pdf https://revistas.uns.edu.ar/ee/article/view/729 10.52292/j.estudecon.2015.729 Estudios económicos; Vol. 32 No. 65 (2015); 3-18 Estudios económicos; Vol. 32 Núm. 65 (2015); 3-18 Estudios económicos; v. 32 n. 65 (2015); 3-18 2525-1295 0425-368X spa https://revistas.uns.edu.ar/ee/article/view/729/407
institution UNS
collection Biblioteca Digital Académica
building Biblioteca Central
Biblioteca de Economía
bda_str Estudios Económicos
hierarchy_parent_id bda_ee
hierarchy_parent_title Estudios Económicos
hierarchy_top_id bda_str
hierarchy_top_title Biblioteca Digital Académica
first_indexed 2018-08-22T17:39:27Z
last_indexed 2018-08-22T17:39:27Z
language spa
format Online
author Bermúdez, Cecilia
Dabús, Carlos
spellingShingle Bermúdez, Cecilia
Dabús, Carlos
Let it float: new empirical evidence on de facto exchange rate regimes and growth in Latin America
author_facet Bermúdez, Cecilia
Dabús, Carlos
author_sort Bermúdez, Cecilia
title Let it float: new empirical evidence on de facto exchange rate regimes and growth in Latin America
title_short Let it float: new empirical evidence on de facto exchange rate regimes and growth in Latin America
title_full Let it float: new empirical evidence on de facto exchange rate regimes and growth in Latin America
title_fullStr Let it float: new empirical evidence on de facto exchange rate regimes and growth in Latin America
title_full_unstemmed Let it float: new empirical evidence on de facto exchange rate regimes and growth in Latin America
title_sort let it float: new empirical evidence on de facto exchange rate regimes and growth in latin america
topic_facet Exchange rate regimes
Economic growth
System GMM
Regímenes Cambiarios
Crecimiento Económico
System GMM
description This paper reassesses the evidence presented in Levy-Yeyati and Sturzenegger (LYS) (2003) on the relation between exchange rate regimes and economic growth. We use their de facto classification as well as their database, in order to gain robustness and efficiency in the results. We run System GMM estimations. Additionally, we focus on Latin American countries for the period 1974-2004. Differently to LYS, our evidence indicates that exchange rate regimes are not significant to explain economic growth, both in a worldwide sample of countries and particularly in Latin America. However, in this region flexible regimes appear to have more advantages in terms of the role of the determinants of economic growth in relation to the other exchange regimes.
publisher EdiUNS
publishDate 2015
url https://revistas.uns.edu.ar/ee/article/view/729
_version_ 1712295150192951296
score 12,554092