Table 3.

Coefficients associated with the nominal exchange rate differential (β) using fixed effects vector decomposition.

Country of origin	Country of destination
	High-income economies			Middle-income economies
	β	Standard error	Test β =1	β	Standard error	Test β =1
High-income economies	1.013***	0.167	0.010	1.186***	0.561	0.110
Middle-income economies	2.341***	0.751	3.190*	-1.373	3.216	-
Goodness-of-fit
	Origen: High-income Destination: High-income		Origen: High-income Destination: Middle income		Origen: Middle income Destination: High-income
Residual Stage 2	0.950***		0.843***		0.803***
F-Statistica	0.720		0.852		135.17***
AIC	87,438.204		19,644.065		7,936.330
First stage
${\mathit{R}}^2$	0.297		0.630		0.595
F-Statisticb	266.960***		175.230***		75.760***
Annual fixed effect	yes		yes		yes
Country-pair fixed effect	yes		yes		yes
Second stage
${\mathit{R}}^2$	0.058		0.044		0.102
F-Statisticb	819.440***		102.86***		127.61***
Third stage
${\mathit{R}}^2$	0.713		0.899		0.885
F-Statisticb	1,493.280***		889.070***		381.02***
Country-pair fixed effect	yes		yes		yes

Notes: ^a and ^b corresponds to test for $\mathit{\psi }$ = 1 and overall significance test, respectively. - stands for cases in which test β = 1 is not obtained since β -coefficient is not significant. *,**, and *** corresponds to significance at the 10%, 5%, and 1%, respectively.