DP4227 The Choice of Exchange Rate Regime in Developing Countries: A Multinational Panel Analysis
|Author(s):||Jürgen von Hagen, Jizhong Zhou|
|Publication Date:||February 2004|
|Keyword(s):||developing countries, exchange rate regimes, multinomial logit model, simulation, static and dynamic panel|
|JEL(s):||C25, F33, F41|
|Programme Areas:||International Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=4227|
This Paper analyses the choices of exchange rate regimes in developing countries since 1980. Static and dynamic random-effects multinomial panel models are estimated using simulation-based techniques. Explanatory variables include OCA fundamentals, stabilization considerations, currency crises factors, and political and institutional features. The results reveal strong state dependence in regime choices.