Intolerable Surges, Exchange Rate Regimes and Sudden Stops of Capital Inflows

Ayachi Feith () and Bhar Youssef ()
Additional contact information
Ayachi Feith: High School of Economics and Trade of Tunis, Department of Economics, Tunisia
Bhar Youssef: Faculty of Economics and Management, Tunisia

Chapter 9 in European Integration Process in Western Balkan Countries, 2012, vol. 1, pp 178-191 from Institute of Economic Sciences

Abstract: This chapter investigates the effect of the exchange regime on the likelihood of sudden stops. A panel probit analysis is conducted on the data of 43 developing countries from 1980 to 2010. The test investigates the interaction of surges and the exchange regime and their potential impact of the sudden stops of capital inflow. Results support the hypothesis that the peg regimes increase the probability of sudden stops. In addition the surges accompanied by the fixed regime are more likely to be associated with a sudden stop. The principle result of this test is that the crisis of sudden stops is more predictable in the case of the flexible exchange regime than in the peg regimes.

Keywords: Capital flows; sudden stops; surges in capital flows; exchange rate regime; and financial integration current account reversal (search for similar items in EconPapers)
JEL-codes: F31 F32 F37 G01 (search for similar items in EconPapers)
Date: 2012
ISBN: 978-972-9344-05-3
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.ien.bg.ac.rs/images/stories/download/eurointprocess_ch9.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.ien.bg.ac.rs/images/stories/download/eurointprocess_ch9.pdf [301 Moved Permanently]--> http://ien.bg.ac.rs/images/stories/download/eurointprocess_ch9.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibg:chaptr:euinpro-9

Access Statistics for this chapter

More chapters in Book Chapters from Institute of Economic Sciences 12 Zmaj Jovina St, 11000 Belgrade, Serbia. Contact information at EDIRC.
Bibliographic data for series maintained by Zorica Bozic ().