Carlino, G. and R. DeFina (1998), “The Differential Regional Effects of Monetary Policy”, Review of Economics and Statistics, 80 (4), pp.572–587.
Carlino, G. and R. DeFina (1999), “The Differential Regional Effects of Monetary Policy: Evidence from the U.S. States”, Journal of Regional Science, 39 (2), pp.339–358.
Eichengreen, B. and P. Gupta (2013), “The Real Exchange Rate and Export Growth: Are Services Different?”, World Bank Policy Research Working Paper 6629.
Prepared by Kimberly Beaton and Metodij Hadzi-Vaskov.
The decomposition of CFZ re-exports is not available for all re-export markets, with about 17 percent of re-exports categorized as to “other” markets. Of the CFZ export markets published by INEC for 2016Q4, Latin American economies accounted for over 65 percent of total CFZ re-exports.
Of the 20 Panamanian banks, two are state-owned (accounting for about 14 percent of onshore bank assets).
This is consistent with the evidence that construction and manufacturing are typically found to be more sensitive to interest rate changes because the demand for their products as well as their inputs in production rely relatively more on credit. For example, see Carlino and DeFina (1998) and Carlino and DeFina (1999) on the importance of the industry mix for the differential impact of monetary policy.
Regression results suggest that the impact of U.S. economic growth is statistically significant for Panama’s services sector and not significant for the other sectors.
This effect is slightly stronger when Venezuela is excluded from the calculation of the REER. Venezuela is excluded to avoid distortions of the REER as a result of the exceptionally high domestic inflation in Venezuela in recent years.