TY  - RPRT
        AU  - Caporale, Guglielmo Maria
AU  - Essid, Thouraya Hadj Amor
AU  - Rault, Christophe
        TI  - International Financial Integration and Real Exchange Rate Long-Run Dynamics in Emerging Countries: Some Panel Evidence
        PY  - 2009/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4038
        UR  - https://www.iza.org/index.php/publications/dp4038
        AB  - 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.
        KW  - financial integration
KW  - real exchange rate
KW  - second-generation panel unit root and cointegration tests
KW  - misalignment
KW  - emerging economies
        ER  -