Real exchange rate misalignment and economic growth in East African least developed countries

Ayele, Getaneh Mihret

doi:10.1016/j.heliyon.2022.e11840

Cited by 5 publications

(2 citation statements)

References 62 publications

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“…Ethiopia's long-term economic development could potentially benefit from elevated levels of inflation. The findings of this discovery challenge the conclusions of prior research that has established a detrimental relationship between inflation and economic growth [ 75 , 118 ]. This statement emphasizes the importance of understanding inflation and economic progress within the specific context of Ethiopia.…”

Section: Resultscontrasting

confidence: 52%

Impacts of external factors on Ethiopia's economic growth: Insights on foreign direct investment, remittances, exchange rates, and imports

Hordofa

2023

Heliyon

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Section: Resultscontrasting

confidence: 52%

Impacts of external factors on Ethiopia's economic growth: Insights on foreign direct investment, remittances, exchange rates, and imports

Hordofa

2023

Heliyon

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“…The findings of the study show that there is a significant asymmetric relationship between net foreign assets and real exchange rate in African oil-producing countries which is in agreement with Gardberg (2021) in a study on Exchange Rate Sensitivity and the Net Foreign Asset Composition. The study found that net foreign asset composition is related to the exchange rate Similarly, Ayele (2022) found that the RER appreciates for an improved net foreign asset position. Also, Aliyu (2009) found out that the long run showed that the real exchange rate was positively affected by the net foreign assets in Nigeria.…”

Section: Discussion Of Findingsmentioning

confidence: 91%

Economic Fundamentals and Real Exchange Rate in African Oil Producing Countries: Evidence from Asymmetric Cointegration

Adeola,

Olalekan,

Olusegun

2024

IJSSHR

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The role of exchange rates is very important in the international market and the variability of exchange rates both in the case of appreciation or depreciation is directly connected with the economic performance of a country. Exchange rate variations in oil-producing countries in Africa have been too high resulting in volatilities due to domestic and foreign shocks. High volatility of exchange rate may translate into reduction of trade flows, foreign direct investment, and instability in both interest rates and inflation rates. Several studies on the relationship between economic fundamentals and exchange rates focused more on Africa or country-specific with limited focus on African oil-producing countries using asymmetric cointegration. Therefore, this study examines the relationship between some economic fundamentals and real exchange rates in oil-producing countries in Africa. The dynamics panel non-linear autoregressive distributed lag and linear autoregressive distributed lag were used to investigate the relationship between economic fundamentals and real exchange rate (RER). The NARDL result shows evidence that there exists both short and long-run asymmetric relationship between economic fundamentals and RER. The study recommended that policymakers in these countries pay more attention to their macroeconomic policies to reduce the production and transaction costs of foreign direct investment (FDI).

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The behavior of the real effective exchange rate of Ethiopia: does misalignment exist?

Ayele

2023

Macroeconomics and Finance in Emerging Market Economies

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Real exchange rate misalignment and economic growth in East African least developed countries

Cited by 5 publications

References 62 publications

Impacts of external factors on Ethiopia's economic growth: Insights on foreign direct investment, remittances, exchange rates, and imports

Impacts of external factors on Ethiopia's economic growth: Insights on foreign direct investment, remittances, exchange rates, and imports

Economic Fundamentals and Real Exchange Rate in African Oil Producing Countries: Evidence from Asymmetric Cointegration

The behavior of the real effective exchange rate of Ethiopia: does misalignment exist?

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