are control variables, which include (i) current account (expressed as a percentage of
GDP); (ii) natural logarithm of openness (exports plus imports as a percentage of GDP);
(iii) log population; and (iv) log purchasing power parity (PPP)-adjusted real GDP per
capita (Rose, 2007). ε is a well-behaved disturbance term, and α and β are the nuisance
parameters. The control variables data are obtained from the World Development
Indicators. The exchange rates series is obtained from the IFS.