Table 1: List of Countries

Countries
(a) Developed countries with flexible exchange rates (34 countries)
Australia $ {}^{*} $	Estonia $ {}^{\dagger} $	Italy	Slovak Rep. $ {}^{\dagger} $
Austria $ {}^{\dagger} $	Finland $ {}^{\dagger} $	Japan	Slovenia $ {}^{\dagger} $
Belgium $ {}^{\dagger} $	France	Luxembourg $ {}^{\dagger} $	South Korea $ {}^{*\dagger} $
Canada $ {}^{*} $	Germany $ {}^{\dagger} $	Malta $ {}^{\dagger} $	Spain
Croatia $ {}^{\dagger} $	Greece	Netherlands $ {}^{\dagger} $	Sweden $ {}^{*\dagger} $
Cyprus $ {}^{\dagger} $	Hungary $ {}^{*\dagger} $	New Zealand $ {}^{*} $	Switzerland $ {}^{\dagger} $
Czech Rep. $ {}^{*\dagger} $	Iceland $ {}^{*\dagger} $	Norway $ {}^{*} $	United Kingdom $ {}^{*} $
Denmark $ {}^{\dagger} $	Ireland $ {}^{\dagger} $	Poland $ {}^{*\dagger} $
Equatorial Guinea $ {}^{\dagger} $	Israel $ {}^{*} $	Portugal
(b) Less developed countries with flexible exchange rates (34 countries)
Armenia $ {}^{*} $	Chad	Mali	South Africa $ {}^{*} $
Benin	Colombia $ {}^{*} $	Mauritania $ {}^{\dagger} $	Swaziland $ {}^{\dagger} $
Botswana $ {}^{\dagger} $	Congo, Rep. of $ {}^{\dagger} $	Mexico $ {}^{*} $	Togo $ {}^{\dagger} $
Brazil $ {}^{*} $	Indonesia $ {}^{*} $	Morocco	Tunisia $ {}^{\dagger} $
Bulgaria $ {}^{\dagger} $	Kenya	Mozambique	Turkey $ {}^{*} $
Burkina Faso	Latvia $ {}^{\dagger} $	Niger	Uruguay
Cameroon	Lithuania $ {}^{\dagger} $	Paraguay $ {}^{\dagger} $	Zambia $ {}^{\dagger} $
Cape Verde $ {}^{\dagger} $	Macedonia	Romania $ {}^{*\dagger} $
Central African Rep.	Madagascar $ {}^{\dagger} $	Senegal
(c) Developed countries with exchange rates pegged to USD (9 countries)
Aruba $ {}^{\dagger} $	China, P. R.: Hong Kong $ {}^{\dagger} $	Singapore $ {}^{\dagger} $
Bahamas $ {}^{\dagger} $	Kuwait $ {}^{\dagger} $	Trinidad and Tobago $ {}^{\dagger} $
Barbados $ {}^{\dagger} $	Saudi Arabia $ {}^{\dagger} $	United States
(d) Less developed countries with exchange rates pegged to USD (43 countries)
Albania $ {}^{*\dagger} $	El Salvador	Malawi	Peru $ {}^{*} $
Algeria	Gambia	Malaysia $ {}^{\dagger} $	Philippines $ {}^{*} $
Argentina	Georgia $ {}^{\dagger} $	Mauritius $ {}^{\dagger} $	Russia
Bangladesh	Ghana $ {}^{*} $	Moldova $ {}^{\dagger} $	Sri Lanka
Bolivia	Grenada	Mongolia $ {}^{\dagger} $	St. Kitts and Nevis
Burundi	Guatemala $ {}^{*} $	Nepal	St. Lucia $ {}^{\dagger} $
Costa Rica $ {}^{\dagger} $	Haiti	Nicaragua $ {}^{\dagger} $	St. Vincent and Grenes. $ {}^{\dagger} $
Dominica $ {}^{\dagger} $	Honduras $ {}^{\dagger} $	Nigeria	Sudan
Dominican Rep.	India	Pakistan	Thailand $ {}^{*\dagger} $
Ecuador	Jordan $ {}^{\dagger} $	Panama $ {}^{\dagger} $	Uganda
Egypt	Kazakhstan	Papua New Guinea $ {}^{\dagger} $
(e) Other countries (24 countries)
Anguilla	Gabon	Rwanda	Suriname
Cambodia	Guinea-Bissau	Samoa	Syria
China, P. R.: Macao	Guyana	São Tomé and Príncipe	Tonga
Côte d'Ivoire	Iran	Serbia, Rep. of	Ukraine
Ethiopia	Jamaica	Seychelles	Vanuatu
Fiji	Myanmar	Solomon Islands	Vietnam

Notes: List of countries used in the analysis. The number of countries is 144. The classification of countries from panels (a) to (d) is based on the information as of December 2010, together with the classification with $ * $ and $ \dagger $ . Countries with an asterisk (*) adopt inflation targeting. Countries with a dagger ( $ \dagger $ ) have the ratio of the sum of exports and imports to the GDP higher than the median. Countries in panel (e) are included in the regression (2) but dropped in the regression (8), due to the data limitation.