exports concentration and RER in developing countries 1991-2014

We analyse the relation between Real Exchange Rates (RER) misalignments (i.e., RER overvaluation) and export concentration in developing countries. <br>We explore a non-linear relation between these variables by analyzing episodes of “deep” RER misalignment, distinguishing between episodes of profound over and undervaluation. The methodology is based on a dynamic model (2S-SGMM estimator) where the concentration of manufactured exports is explained by a lagged RER misalignment, conditional to a set of structural variables, for a panel data of 97 developing countries during 1991-2014.