Abstract

The purpose of this article is to see whether export gains are likely to neutralize even partially the effect of the valuation of US dollar-denominateddebt in the EMCCA area The aim is therefore to verify the effectiveness of the natural hedge Taking the period 1995-2019 we use an empirical method 5based on the heterogeneous dynamic panel estimator with common-correlated effects We find that the natural hedgeis inefficient i e the export gains from nominal exchange rate changes do not cover the original sin valuation effect of these same changes The results of our estimates call for a rethinking of the integration of EMCCA countries into world trade given that an integration based on the development of large-scale exports is a sine qua non for the effectiveness of natural hedging