The Empirics of Foreign Reserves

Philip Lane and Dominic Burke
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Dominic Burke: Postal: Department of Economics, Trinity College, Dublin 2, Ireland

CEG Working Papers from Trinity College Dublin, Economics Department

Abstract: In this paper, we study the determinants of cross-country variation in the level of international reserves over 1981-95. Confirming intuition, trade openness is easily the most important variable. There is also some evidence that financial deepening is associated with an increase in the reserves ratio. Smaller and more volatile industrial countries hold larger reserves than their larger, less volatile counterparts. In addition, more indebted developing countries tend to have smaller reserve ratios. We view these results as establishing some interesting stylized facts that may be helpful in informing future theoretical modelling of reserves behavior.

JEL-codes: F3 F4 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (46)

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Journal Article: The Empirics of Foreign Reserves (2001)
Working Paper: The Empirics of Foreign Reserves (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:tcd:tcdceg:20013

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