Table 9 Description of the variables and sources

Current account balance (% of GDP)

Current account balance is the sum of net exports of goods, services, net income and net current transfers as a share of gross domestic product

IMF-BOPS, IMF-WEO and WDI and own calculation

Real GDP growth rate (annual %)

Real GDP growth rate is a measure of the rate of change in GDP from one year to another

UNCTAD

∆ Real effective exchange rate (annual  %) (2005 = 100)

Real effective exchange rate is the nominal effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs

IMF–IFS, Z–D, BIS and own calculation

Commodity price index

Commodity price index considered as an interaction dummy variable that takes the average value of the prime exporting commodities of the respecting commodities exporting countries and 0 for the manufacturing countries

UNCTAD and Own calculation

Net foreign assets/GDP

Net foreign assets measured by total assets minus total liabilities over GDP, where total assets are the sum of foreign direct investment assets, portfolio equity assets, debt assets, financial derivatives assets and foreign exchange reserves excluding gold and total liabilities are the sum of foreign direct investment liabilities, portfolio equity liabilities, debt liabilities, financial derivatives liabilities

L–M–F, IFS and own calculation

Trade openness

Trade openness is the sum of exports and imports measured as a share of gross domestic product

WDI

de jure capital openness (Chinn–Ito index)

De jure capital openness measured by Chinn and Ito (2008) based on information regarding restrictions in the IMF’s Annual Report on Exchange Arrangements and Exchange Restrictions (AREAER). The Chinn–Ito index is normalized between 0 and 1. Higher values of this index indicate that a country is more open to cross-border capital transactions

C–I

De facto capital openness

De facto capital openness measured by the sum of total foreign assets and total foreign liabilities over gross domestic product multiplied by 100

L–M–F, IFS and own calculation

Exchange rate stability index

To measure exchange rate stability (Aizenman et al. 2010), consider that annual standard deviations of the monthly exchange rate between the home country and the base country are calculated and included in the following formula to normalize the index between 0 and 1:

ERS = 0.01/0.01 + stdev(∆(log(exchange rate)))

Higher values of this index indicate more stable movement of the exchange rate against the currency of the base country

A–C–I

Crisis dummy

Crisis dummy considered as a dummy variable that takes the value of 1 during the years of banking, currency and Asian crisis happen and 0 otherwise

L–V

Asian crisis dummy

Asian crisis dummy considered as a dummy variable that takes the value of 1 during the years of Asian crisis happen and 0 otherwise

L–V