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 A number of variables could be used to mandate for trade and capital account openness. For trade openness, we use the sum of imports and exports to GDP ratio. On the capital account openness side, we appeal to the Chinn and Ito (2006) financial openness index. We use the equation (3) as mentioned in section 3.2, as we want to estimate the differential effects of each exchange rate regime up to current account in a single regression using dummies for each regime and including control variables for trade and capital flows openness.    The dependent variable is the current account balance. As explanatory variables we have the lagged current account, the flexible and the intermediate regimes in the form of dummy variables. Additionally, in order to examine the effect of each regime up to current account we use as independent variables the interaction terms of flexible and intermediate regimes with the lagged current account. Furthermore, as control variables are included the trade openness and the capital flows openness and the interaction terms for trade and capital flows openness with lagged current account in order to observe how the openness variables affect the current account. The form of the model is used in this case is the following:      In this chapter we want to examine how the gross domestic product affects the relationship between current account balance and exchange rate regime. We use the equation (3) as we want to  estimate the differential effects of each exchange rate regime up to current account in a single regression using dummies for each regime and including control variables for trade and capital flows openness and the gross domestic product. The most appropriate variable to represent the gross domestic product is the GDP per capita (PPP).    The dependent variable of this model is the current account. As explanatory variables we have the lagged current account, the flexible and the intermediate regimes in the form of dummy variables. Additionally, we use as independent variables the interaction terms of flexible and intermediate regimes with the lagged current account. Furthermore, as control variables are included the trade openness and the capital flows openness and the interaction terms for trade and capital flows openness with lagged current account in order to observe how the openness variables affect the current account. Finally, we add the GDP per capita based on purchasing power parity. Hence, in this section our model has the following form:  It is a fact that as inflation in an economy increases, the prices of goods in the domestic market rise. This situation has as a result, products to be more expensive and hence less competitive in the international markets. This makes the current account balance weaker. In this chapter we want to examine the role of inflation as control variable in the relationship between current account balance and exchange rate regime. For the purpose of this chapter we have to add as a control variable the inflation, hence we have to use the equation (3).   The dependent variable of this model is the current account. As explanatory variables we have the lagged current account, the flexible and the intermediate regimes in the form of dummy variables. Additionally, we use as independent variables the interaction terms of flexible and intermediate regimes with the lagged current account. Furthermore, as control variables are included the trade openness and the capital flows openness and the interaction terms for trade and capital flows openness with lagged current account. Moreover, we add the GDP per capita based on purchasing power parity. And finally, we add the Inflation in order to observe how the effect of this variable over ours analysis. Hence, in this chapter the model has the following In this model we want to examine how the value that an individual consumer pays for an imported good at the consumer level will affect the relationship between current account balance and exchange rate regime. We use the equation (3), as mentioned in section 3.2 in order to be able to estimate the differential effects of each exchange rate regime up to current account in a single regression using dummies for each regime and including control variables for trade and capital flows openness, for the gross domestic product, for inflation and for the real effective exchange rate.  The dependent variable of this model is the current account. As explanatory variables we have the lagged current account, the flexible and the intermediate regimes in the form of dummy variables. Additionally, we use as independent variables the interaction terms of flexible and intermediate regimes with the lagged current account. Furthermore, as control variables are included the trade openness and the capital flows openness and the interaction terms for trade and capital flows openness with lagged current account. Moreover, we add the GDP per capita based on purchasing power parity, the inflation and the real effective exchange rate. Hence, in this chapter the model has the following form:

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