Real exchange rate levels and economic development: theoretical analysis and econometric evidence

Abstract

According to the development approach to exchange rates, competitive currencies have been a key factor in most East and Southeast Asian successful growth strategies. There is also today an important empirical literature that relates overvaluations to low per capita growth rates. While the econometric literature on this issue is relatively rich, theoretical analysis of channels through which real exchange rate levels could affect economic development are very scarce. This paper intends to contribute to the debate by bringing more theoretical elements and providing new econometric evidence to the connections between real exchange rate levels and development.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 310 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.