• Economics
  • Published 2005

Productivity growth and the exchange rate regime: The role of financial development

@inproceedings{Aghion2005ProductivityGA,
  title={Productivity growth and the exchange rate regime: The role of financial development},
  author={Philippe Aghion and Philippe Bacchetta and Romain Ranci{\`e}re and Kenneth S. Rogoff},
  year={2005}
}
This paper offers empirical evidence that a country's choice of exchange rate regime can have a significant impact on its medium-term rate of productivity growth. Moreover, the impact depends critically on the country's level of financial development, its degree of market regulation, and its distance from the global technology frontier. We illustrate how each of these channels may operate in a simple stylized growth model in which real exchange rate uncertainty exacerbates the negative… CONTINUE READING

Citations

Publications citing this paper.
SHOWING 1-10 OF 16 CITATIONS

References

Publications referenced by this paper.
SHOWING 1-10 OF 30 REFERENCES

Outward Oriented Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985„Economic Development and Cultural Change

D. Dollar
  • 1992
VIEW 3 EXCERPTS
HIGHLY INFLUENTIAL

A New Look at Exchange Rate Volatility and Trade Flows

P. Clark, N. Tamirisa, Shang-Jin Wei 2004
  • IMF Occasional Paper No. 235.
VIEW 3 EXCERPTS
HIGHLY INFLUENTIAL

Wincoop (2005a), “A Theory of the Currency Denomination of International Trade,”

Bacchetta, Ph, E. van
  • Journal of International Economics,
  • 2005

Wincoop (2005b), “Can Information Heterogeneity Explain the Exchange Rate Determination Puzzle?”mimeo

Bacchetta, Ph, E. van
  • 2005