scholarly journals Aid, Real Exchange Rate Misalignment and Economic Performance in Sub-Saharan Africa

2009 ◽  
Author(s):  
Ibrahim Elbadawi ◽  
Linda Kaltani ◽  
Raimundo Soto
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Economic Performance ◽  
Sub Saharan Africa ◽  
Exchange Rate Misalignment ◽  
Sub Saharan

The Effects of Domestic Policies and External Factors on the Real Exchange Rate and Economic Performance in Sub-Saharan Africa

1996 ◽  
Vol 40 (1) ◽  
pp. 92-103
Author(s):  
Jonathan Ikoba ◽  
Akorlie A. Nyatepe-Coo ◽  
Oluwole Owoye
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
External Factors ◽  
Sub Saharan Africa ◽  
Budget Balance ◽  
African Countries ◽  
The Real ◽  
Exchange Rate Misalignment ◽  
Sub Saharan ◽  
Exchange Rate Changes

This paper examines the relative contributions of domestic and external factors to real exchange rate changes in six sub-Sahara African countries during the period 1960–91. A vector autoregression (VAR) model is used to analyze the interrelationships between the current account, the budget balance and the real exchange rate. The results suggest that external factors such as the terms of trade and foreign income were as important as domestic policy mistakes in causing real exchange rate misalignment in sub-Saharan Africa.

Real exchange rate misalignment and civil conflict: Evidence from sub-Saharan Africa

2019 ◽  
Author(s):  
Dessie Tarko Ambaw ◽  
Nicholas Sim
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Political Stability ◽  
Civil Conflict ◽  
Commodity Price ◽  
Sub Saharan Africa ◽  
Commodity Price Shocks ◽  
Exchange Rate Misalignment ◽  
Sub Saharan ◽  
Do So

Abstract Real exchange rate (RER) misalignment, which is the deviation of the actual RER from its equilibrium, occurs frequently in developing countries. In this article, we show that civil conflict in sub-Saharan Africa (SSA) can be influenced by RER misalignment. To do so, we construct an RER misalignment index whose variation is driven by shocks to each country’s RER fundamentals. Based on a panel of 35 countries from 1975 to 2006, we find that RER misalignment may increase the incidence of civil conflict in sub-Saharan Africa on average. Crucially, this effect is present even when rainfall and commodity price shocks—two widely acknowledged causes of civil conflict—are controlled for. Therefore, our article suggests that RER stabilization can foster political stability in the region.

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