TY  - BOOK
AU  - Christiansen,Lone Engbo
AU  - Prati,Alessandro
AU  - Ricci,Luca Antonio
AU  - Tressel,Thierry
TI  - External Balance in Low Income Countries
T2  - IMF Working Papers; Working Paper
SN  - 1451873689 :
SN  - 1018-5941
PY  - 2009///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Capital Account Liberalization
KW  - imf
KW  - Exchange Rate
KW  - International Lending and Debt Problems
KW  - Net Foreign Assets
KW  - Real Exchange Rate
KW  - Colombia
KW  - India
KW  - Indonesia
KW  - Pakistan
KW  - Thailand
N2  - This paper offers a coherent empirical analysis of the determinants of the real exchange rate, the current account, and the net foreign assets position in low income countries. The paper focuses on indicators specific to low income countries, such as the quality of policies and institutions, the special access to official external financing, and the role of shocks. In addition to more standard factors, we find that domestic financial liberalization is associated with higher current account balances and net foreign asset positions, while capital account liberalization is associated with lower current account balances and net foreign asset positions and with more appreciated real exchange rates. Negative exogenous shocks tend to raise (reduce) the current account in countries with closed (opened) capital accounts. Finally, foreign aid is progressively absorbed over time through net imports, and is associated with a more depreciated real exchange rate in the long-run
UR  - http://elibrary.imf.org/view/IMF001/10474-9781451873689/10474-9781451873689/10474-9781451873689.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451873689
ER  -