Hidden Bibliographic Details
| Other authors / contributors: | Kinda, Tidiane, issuing body.
Plane, Patrick, issuing body.
International Monetary Fund. African Department, issuing body.
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| ISBN: | 1283563800
9781283563802
9781455284160
1455284165
145521485X
9781455214853
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| Notes: | At head of title: African Department.
Title from PDF title page (IMF Web site, viewed March 24, 2011).
Available in PDF, ePUB, and Mobi formats on the Internet.
Includes bibliographical references (pages 21-26).
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| Summary: | This paper analyzes the impact of capital inflows and exchange rate flexibility on the real exchange rate in developing countries based on panel cointegration techniques. The results show that public and private flows are associated with a real exchange rate appreciation. Among private flows, portfolio investment has the highest appreciation effect-almost seven times that of foreign direct investment or bank loans-and private transfers have the lowest effect. Using a de facto measure of exchange rate flexibility, we find that a more flexible exchange rate helps to dampen appreciation of the real exchange rate stemming from capital inflows.
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