%0 Report
        %A Caporale, Guglielmo Maria
%A Essid, Thouraya Hadj Amor
%A Rault, Christophe
        %T International Financial Integration and Real Exchange Rate Long-Run Dynamics in Emerging Countries: Some Panel Evidence
        %D 2009
        %8 2009 Feb
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4038
        %U https://www.iza.org/index.php/publications/dp4038
        %X 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.
        %K financial integration
%K real exchange rate
%K second-generation panel unit root and cointegration tests
%K misalignment
%K emerging economies