Do exchange rate misalignments really affect economic growth? The case of Sub-Saharan African countries
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- handle: 10670/1.pwoyq5
- halshs: halshs-01403708
- doi: 10.1016/j.inteco.2015.10.001
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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.inteco.2015.10.001
Mots-clés
Misalignments Growth Bayesian inference Cross-sectional dependence F - International Economics/F.F3 - International Finance/F.F3.F31 - Foreign Exchange O - Economic Development, Innovation, Technological Change, and Growth/O.O4 - Economic Growth and Aggregate Productivity/O.O4.O47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence C - Mathematical and Quantitative Methods/C.C5 - Econometric Modeling C - Mathematical and Quantitative Methods/C.C5 - Econometric Modeling/C.C5.C51 - Model Construction and EstimationSujets proches
Economic growth Growth, Economic Development, EconomicCiter ce document
Ferdinand Owoundi, « Do exchange rate misalignments really affect economic growth? The case of Sub-Saharan African countries », HAL-SHS : droit et gestion, ID : 10.1016/j.inteco.2015.10.001
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Résumé
In order to shed light on the debate concerning the exiting of the Franc Zone area, we address the issue of the growth effects of currency misalignments in Sub-Saharan African countries. To this end, we first assess misalignments which we include in a growth equation while taking into account uncertainty and “jointness” between growth determinants using recent Bayesian inference techniques. More specifically, exchange rate regimes, as well as cross-sectional error dependence, will be explored. We thus demonstrate that the gain related to undervaluation is almost zero regardless of the exchange rate regime.