@TechReport{iza:izadps:dp4038,
            	author={Caporale, Guglielmo Maria and Essid, Thouraya Hadj Amor and Rault, Christophe},
            	title={International Financial Integration and Real Exchange Rate Long-Run Dynamics in Emerging Countries: Some Panel Evidence},
            	year={2009},
	month={Feb},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={4038},
            	url={https://www.iza.org/index.php/publications/dp4038},
	abstract={The aim of this paper is to provide new empirical evidence on the impact of international financial integration on the long-run Real Exchange Rate (RER) in 39 developing countries belonging to three different geographical regions (Latin America, Asia and MENA). It covers the period 1979-2004, and carries out “second-generation” tests for non-stationary panels. Several factors, including international financial integration, are shown to drive the long-run RER in emerging countries. It is found that the new financial environment characterised by international financial integration leads to a depreciation of the RER in the long run. Further, RER misalignments take the form of an under-valuation in most MENA countries and an over-valuation in most Latin American and Asian countries.},
	keywords={financial integration;real exchange rate;second-generation panel unit root and cointegration tests;misalignment;emerging economies},
            }