DP4227 | The Choice of Exchange Rate Regime in Developing Countries: A Multinational Panel Analysis

Publication Date

23/02/2004

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Abstract

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.