Volume 10, Issue 2 (2010)                   QJER 2010, 10(2): 0-0 | Back to browse issues page

‎ 20.1001.1.17356768.1389.10.2.5.8

XML Persian Abstract Print

Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Farzinvash A, Biria S. Effect of Exchange Rate System on the Demand for and the Composition of International Reserves in Developing Countries. QJER 2010; 10 (2)
URL: http://ecor.modares.ac.ir/article-18-11034-en.html
Effect of Exchange Rate System on the Demand for and the Composition of International Reserves in Developing Countries
Asadollah Farzinvash * 1, Soheila Biria2
1- tehran university, economics faculty
2- tehran,
Abstract:   (5652 Views)
The aim of this paper is twofold. It first investigates the demand for international reserves using panel data for 32 developing countries during the period 1975 – 2004. To this end, an Error Correction Model (ECM) approach is employed to estimate the empirical model and then a capital asset pricing model (CAMP) is used to determine the composition of the foreign exchange reserves. A dummy variable is included in the model to consider the effect of changing exchange rate system on the demand and the composition of international reserves. The results show that there is a negative relationship between exchange rate flexibility and the demand for international reserves.
Keywords: Panel Data, Demand for International Reserves, Error Correction Model, CAMP Model, Currency Composition of Reserves, Developing Countries
Full-Text [PDF 289 kb]   (3478 Downloads)    

Received: 2010/07/7 | Accepted: 2010/07/7 | Published: 2010/07/7
Add your comments about this article : Your username or Email:
CAPTCHA
Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.