Furlan, Benjamin, Gächter, Martin, Krebs, Bob, Oberhofer, Harald. 2016. Democratization and real exchange rates. Scottish Journal of Political Economy 63 (2), 216-242.


BibTeX

@ARTICLE{Furlan2016,
title = {Democratization and real exchange rates},
author = {Benjamin Furlan and Martin Gächter and Bob Krebs and Harald Oberhofer},
year = {2016},
doi = {http://dx.doi.org/10.1111/sjpe.12088},
volume = {63},
number = {2},
language = {EN},
pages = {216-242},
journal = {Scottish Journal of Political Economy},
abstract = {In this article, we combine two so far separate strands of the economic literature and argue that democratization leads to a real exchange rate appreciation. We test this hypothesis empirically for a sample of countries observed from 1980 to 2007 by combining a difference-in-difference approach with propensity score matching estimators. Our empirical results reveal a strong and significant finding: democratization causes real exchange rates to appreciate. Consequently, the ongoing process of democratization observed in many parts of the world is likely to reduce exchange rate distortions.},
}

Abstract

In this article, we combine two so far separate strands of the economic literature and argue that democratization leads to a real exchange rate appreciation. We test this hypothesis empirically for a sample of countries observed from 1980 to 2007 by combining a difference-in-difference approach with propensity score matching estimators. Our empirical results reveal a strong and significant finding: democratization causes real exchange rates to appreciate. Consequently, the ongoing process of democratization observed in many parts of the world is likely to reduce exchange rate distortions.

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Scottish Journal of Political Economy
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new VW-D
Language English
Title Democratization and real exchange rates
Volume 63
Number 2
Year 2016
Page from 216
Page to 242
Reviewed? Y
DOI http://dx.doi.org/10.1111/sjpe.12088

Associations

People
Oberhofer, Harald (Details)
External
Furlan, Benjamin (Paris Lodron University of Salzburg, Austria)
Gächter, Martin (OeNB - Oesterreichische Nationalbank, Austria)
Krebs, Bob (University of Innsbruck, Austria)
Organization
International Economics IN (Details)
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