In this paper we identify the main determinants of the exchange rate regimes in Central and Eastern European Countries (CEECs). For this purpose, we use an ordered logit model for the official (de jure) and the actual (de facto) exchange rate classifications. We find that trade openness and concentration, inflation differentials, international reserves stocks, and financial conditions are the m...

according to the literature, economic liberalization is an important factor affecting the intra industry trade (iit). present paper is trying to examine the positive effect of economic liberalization on iran’s iit as well as to review the effectiveness of important components of economic liberalization including privatization, trade liberalization, exchange rate liberalization and financial lib...

A major puzzle in international finance is the well-documented inability of models based on monetary fundamentals to produce better out-of-sample forecasts of the nominal exchange rate than a naive random walk. While this literature has generally employed statistical measures of forecast accuracy, we investigate whether there is any economic value to the predictive power of monetary fundamental...

a r t i c l e i n f o JEL Classification: C22 F31 Keywords: Purchasing power parity Real effective exchange rate Transition countries Sequential Panel Selection Method Panel KSS unit root test Fourier function Policy implications This study applies the Sequential Panel Selection Method (SPSM), proposed by Chortareas and Kapetanios (2009) to test the validity of long-run purchasing power parity ...

This paper develops a view of exchange rate policy as a trade-off between the desire to smooth fluctuations in real exchange rates so as to reduce distortions in consumption allocations, and the need to allow flexibility in the nominal exchange rate so as to facilitate terms of trade adjustment. We show that optimal nominal exchange rate volatility will reflect these competing objectives. The k...

This paper develops a Bayesian quantile regression model with time-varying parameters (TVPs) for forecasting inflation risks. The proposed parametric methodology bridges the empirically established benefits of TVP regressions ability to flexibly whole distribution inflation. In order make our approach accessible and relevant forecasting, we derive an efficient Gibbs sampler by transforming stat...

This paper considers the bootstrap for the GMM estimator of overidentified linear models when autocorrelation structures of moment functions are unknown. When moment functions are uncorrelated after finite lags, Hall and Horowitz, [1996. Bootstrap critical values for tests based on generalized method of moments estimators. Econometrica 64, 891–916] showed that errors in the rejection probabilit...

In the wake of steep fall in national savings due to economic shocks, among them COVID-19 pandemic macroeconomic consequences, this study examines what extent inflation explains variation saving behavior developing countries. Most past empirical studies investigated role on only advanced nations. The current will investigate effect culture Kenya. To determine how saving, use s ordinary least sq...

the main objective of this paper is to study the relationship between the energy consumption (energy use intensity), economic growth, and co2 emission in iran. to that end, we use time series data of iran during 1967–2004. in order to examine the long-run relationship among these variables, the johanson-juselius cointegration method is used along with vecm. the main finding of this study shows ...

within the early theories of fdi and multinational firms, fdi and foreign trade were considered to be substitutes. new international trade theories emphasize, however the complementary relationship between fdi and foreign trade.this is the result of introducing new aspects in the models like increasing returns to scale, product differentiation and technology-differences among nations.this paper...