Definition of the explanatory variables in the panel regression and data sources
| Variable | Description | Source |
|---|---|---|
| Real economic growth rate (g) | Growth rate of real gross domestic product (annual %) | World Development Indicators (World Bank) |
| Population growth rate (POPGR) | Population growth (annual %). Annual population growth rate for year t is the exponential rate of growth of midyear population from year t−1 to t | World Development Indicators (World Bank) |
| Inflation rate (INF) | Inflation measured by the consumer price index (annual %) | World Development Indicators (World Bank) |
| Human capital (HK) | Human capital using life expectancy at birth (years) as a proxy. This variable is considered by World Bank to elaborate the Human Capital Index, however its data availability is scarce to the database, so for this reason I use life expectancy at birth | World Development Indicators (World Bank) |
| Degree of openness (OPEN) | It is the sum of exports and imports of goods and services (% of GDP) | World Development Indicators (World Bank) |
| Misalignment (MIS_186) | It is the difference between the real effective exchange rates and their equilibrium real effective exchange rates which is calculated against 186 trading partners based on the behavioral equilibrium exchange rate (BEER) approach | Couharde et al. (2018) |
| Misalignment (MIS_30) | It is the difference between the real effective exchange rates and their equilibrium real effective exchange rates which is calculated against 30 trading partners based on the behavioral equilibrium exchange rate (BEER) approach | Couharde et al. (2018) |
| Variable | Description | Source |
|---|---|---|
| Real economic growth rate (g) | Growth rate of real gross domestic product (annual %) | World Development Indicators (World Bank) |
| Population growth rate (POPGR) | Population growth (annual %). Annual population growth rate for year | World Development Indicators (World Bank) |
| Inflation rate (INF) | Inflation measured by the consumer price index (annual %) | World Development Indicators (World Bank) |
| Human capital (HK) | Human capital using life expectancy at birth (years) as a proxy. This variable is considered by World Bank to elaborate the Human Capital Index, however its data availability is scarce to the database, so for this reason I use life expectancy at birth | World Development Indicators (World Bank) |
| Degree of openness (OPEN) | It is the sum of exports and imports of goods and services (% of GDP) | World Development Indicators (World Bank) |
| Misalignment (MIS_186) | It is the difference between the real effective exchange rates and their equilibrium real effective exchange rates which is calculated against 186 trading partners based on the behavioral equilibrium exchange rate (BEER) approach | |
| Misalignment (MIS_30) | It is the difference between the real effective exchange rates and their equilibrium real effective exchange rates which is calculated against 30 trading partners based on the behavioral equilibrium exchange rate (BEER) approach |
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