کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
964744 | 930596 | 2011 | 19 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: The role of financial development in exchange rate regime choices The role of financial development in exchange rate regime choices](/preview/png/964744.png)
We make the first attempt in the literature to empirically investigate the role of financial development in the choice of exchange rate regimes. Using a binary choice model, we first show that financially less developed countries are more likely to adopt a fixed exchange rate. To further examine the impact of financial development on the conditional probability of exiting from an existing pegged system to a flexible one, we then employ hazard-based duration analysis. We find strong evidence that countries with higher levels of financial development are more likely to exit a pegged system, and, interestingly, financial development only matters to orderly exits but not disorderly exits. Our results are robust to controlling for endogeneity and sample selection.
Journal: Journal of International Money and Finance - Volume 30, Issue 4, June 2011, Pages 641–659