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The real exchange rate and economic development

✍ Scribed by Arslan Razmi; Martin Rapetti; Peter Skott

Book ID
116893019
Publisher
Elsevier Science
Year
2012
Tongue
English
Weight
573 KB
Volume
23
Category
Article
ISSN
0954-349X

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## Abstract As the real exchange rate of developing countries is especially vulnerable to stochastic events, standard unit root tests do not capture such events adequately. Using a Markov switching extension of the ADF test, which incorporates stochastic regime switching, we address the issue of re