Impact of commodity price volatility on external debt: the role of exchange rate regimes

Autor:	Mala Raghavan, Joaquin L. Vespignani, Monoj Kumar Majumder
Rok vydání:	2021
Předmět:	ComputingMilieux_GENERAL Economics and Econometrics Floating exchange rate Exchange rate Economics Monetary economics Exchange-rate regime External debt Volatility (finance) Commodity (Marxism) Panel data
Zdroj:	Applied Economics. 53:6626-6640
ISSN:	1466-4283 0003-6846
Popis:	This study explores the impact of commodity price volatility on external debt accumulation under fixed, managed, and floating exchange rate regimes. We estimate dynamic panel data models for 97 countries from 1993 to 2016. Our empirical findings show that commodity price volatility increases external debt accumulation for commodity-exporting countries. This impact is three-times higher for countries with fixed exchange rate regimes compared to managed floating exchange rate regimes. Under floating exchange regimes, the effect of commodity price volatility on external debt is statistically insignificant. Our results suggest that the adoption of a floating exchange rate regime by commodity-exporting countries is critical to mitigate the effects of commodity price volatility on external debt accumulation.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::a53941e37624d6edd9ad63156b5cb43d https://doi.org/10.1080/00036846.2021.1947960 Zobrazit plný text záznamu Plný text ve formátu PDF