Open Access Repository

Commodity price volatility, external debt and exchange rate regimes

Downloads

Downloads per month over past year

Majumder, MK ORCID: 0000-0003-4214-4689, Raghavan, M ORCID: 0000-0002-4123-5004 and Vespignani, JL ORCID: 0000-0003-0265-4377 2020 , Commodity price volatility, external debt and exchange rate regimes.

[img]
Preview
PDF
2020-13_Majumde...pdf | Download (672kB)

| Preview

Abstract

This study explores the impact of commodity price volatility on external debt accumulation under fixed, managed, and floating regimes. We estimate dynamic panel data models for 97 countries from 1993 to 2016. Our empirical findings show that commodity price volatility increases external debt accumulation for commodity-exporting countries. This impact is three times higher for countries with fixed exchange rate regimes compared to managed floating exchange rate regimes. Under floating exchange regimes, the effect of commodity price
volatility on external debt is statistically insignificant. Our results suggest that the adoption of a floating exchange rate regime by commodity-exporting countries is critical to mitigate the effects of commodity price volatility on external debt accumulation.

Item Type: Report (Discussion Paper)
Authors/Creators:Majumder, MK and Raghavan, M and Vespignani, JL
Keywords: Commodity price volatility, external debt, commodity-exporting countries, exchange rate regime
Publisher: University of Tasmania
Copyright Information:

Copyright 2020 University of Tasmania

Additional Information:

Discussion Paper Series N 2020-13
JEL Classification Numbers: E62, F31, F34, G01

Item Statistics: View statistics for this item

Actions (login required)

Item Control Page Item Control Page
TOP