Political economy of exchange rate regimes: a panel data analysis of selected European countries /Doviz kuru rejimlerinin politik ekonomisi: secilmis Avrupa ulkeleri uzerine bir panel veri analizi

The aim of this study is to investigate the effects of economic and political factors on the choice of exchange rate regimes. In order to achieve this goal, we apply for Binary Choice Panel Probit Model to examine the relationships between exchange rate regimes and financial depth, real exchange rat...

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Published in:Cankiri Karatekin Universitesi Iktisadi ve Idari Bilimler Fakultesi Dergisi 2015-03, Vol.5 (1), p.157
Main Authors: Beskaya, Ahmet, Ergun, Havanur
Format: Article
Language:Turkish
Subjects:
Foreign exchange
Prices and rates
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Summary:The aim of this study is to investigate the effects of economic and political factors on the choice of exchange rate regimes. In order to achieve this goal, we apply for Binary Choice Panel Probit Model to examine the relationships between exchange rate regimes and financial depth, real exchange rate, capital inflow and democracy. Our data covers the period of 1980-2013 for the selected EU countries, namely, Austria, Germany, Belgium, France, Denmark, England, Sweden and Italy. Estimation results demonstrates that the choice of fixed exchange rate regime become disadvantageous and flexible exchange rate turn out to be the right choice as financial depth, real exchange rate, capital inflow and democratization increases. Keywords: Political Economy, Exchange Rate, Panel Probit Model. JEL Classification Codes: P48, F31, C23. Bu calismanin amaci, doviz kuru rejimi tercihinde ekonomik ve politik faktorlerin etkisini arastirmaktir. Bu amacla, secilen AB uyesi ulkelerde (Avusturya, Almanya, Belcika, Fransa, Danimarka, Ingiltere, Isvec, Italya) 1980-2013 yili verileri kullanilarak ulkelerin doviz kuru rejimi tercihleriyle finansal derinlik, sermaye girisleri, reel doviz kuru ve demokrasi arasindaki iliski Ikili Tercih Panel Probit Modeli kullanilarak tahmin edilmistir. Calismanin sonucuna gore, finansal derinlik, reel doviz kuru ve sermaye girisleri arttikca ve demokrasi iyilestikce sabit doviz kuru dezavantajli hale gelmekte ve esnek doviz kuru rejimi dogru bir tercih olmaktadir. Anahtar Kelimeler: Politik Iktisat, Doviz Kuru, Panel Probit Model. JEL Siniflandirma Kodlari: P48, F31, C23.
ISSN:1308-5549