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.