Furlan, Benjamin, Gächter, Martin, Krebs, Bob, Oberhofer, Harald. 2016. Democratization and real exchange rates. Scottish Journal of Political Economy 63 (2), 216-242.

RIS

@ARTICLE{Furlan2016,
title = {Democratization and real exchange rates},
author = {Benjamin Furlan and Martin Gächter and Bob Krebs and Harald Oberhofer},
year = {2016},
doi = {http://dx.doi.org/10.1111/sjpe.12088},
volume = {63},
number = {2},
language = {EN},
pages = {216-242},
journal = {Scottish Journal of Political Economy},
abstract = {In this article, we combine two so far separate strands of the economic literature and argue that democratization leads to a real exchange rate appreciation. We test this hypothesis empirically for a sample of countries observed from 1980 to 2007 by combining a difference-in-difference approach with propensity score matching estimators. Our empirical results reveal a strong and significant finding: democratization causes real exchange rates to appreciate. Consequently, the ongoing process of democratization observed in many parts of the world is likely to reduce exchange rate distortions.},
}