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ON THE LINK BETWEEN REAL EXCHANGE RATE AND DOMESTIC INVESTMENT: ASYMMETRIC EVIDENCE FROM AFRICA

Mohsen Bahmani-Oskooee|Abera Gelan
경제연구소 (Hanyang Economic Research Institute)|2019.09|Journal of Economic Development|제44권 제3호|pp. 1-17|DOI 10.35866/caujed.2019.44.3.001

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키워드

AfricaReal exchange rateDomestic investmentAsymmetry analysis
주제분류경제학

초록

Exchange rate changes are said to affect the level of domestic direct investment in either direction. In this paper, we consider the experience of each of the 18 countries in Africa. When a linear model is used, we find that the real effective exchange rate has significant short-run effects on domestic investment in three countries and long-run effects in five countries. However, when a nonlinear model was used, the number of countries rose to 13 and seven respectively. Furthermore, in almost all countries, the short-run and long-run effects were asymmetric

Abstract

Exchange rate changes are said to affect the level of domestic direct investment in either direction. In this paper, we consider the experience of each of the 18 countries in Africa. When a linear model is used, we find that the real effective exchange rate has significant short-run effects on domestic investment in three countries and long-run effects in five countries. However, when a nonlinear model was used, the number of countries rose to 13 and seven respectively. Furthermore, in almost all countries, the short-run and long-run effects were asymmetric

참고문헌 (27)

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관련 논문AI추천

Public Spending and Real Exchange Rate Instabilities and Growth in Africa : Evidence from Panel DataOumar Diallo경제연구소 · Journal of Economic Development2007 · 제32권 제2호The Role of Foreign Exchange Rates in Sub-Saharan Countries: Empirical Comparison with Non-Euro OECD Countries Using Panel DataElias Sanidas, Fetene Bogale Hunegnaw경제연구소 · Seoul Journal of Economics2017 · 제30권 제2호Private Investment In Sub-Saharan Africa: a Dynamic Panel ApproachDamiano Kulundu, Francis Mwega, Ken Chamuva Shawa경제연구소 · Journal of Economic Research (JER)2012 · 제17권 제3호FOREIGN CAPITAL FLOWS, FINANCIAL DEVELOPMENT AND GROWTH IN SUB-SAHARAN AFRICAAFEES SALISU, BELLO AJIDE, OLUWATOSIN ADENIYI경제연구소 · Journal of Economic Development2015 · 제40권 제3호When and How African Real Exchange Rates Relative to China Affect its Manufacturing?Ping Hua, Sylviane Guillaumont Jeanneney경제연구소 · Journal of Economic Development2020 · 제45권 제4호FINANCIAL SECTOR REFORMS AND PRIVATE INVESTMENT IN SUB-SAHARAN AFRICAN COUNTRIESBabajide Fowowe경제연구소 · Journal of Economic Development2011 · 제36권 제3호

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