The exchange rate, income, trade openness and the trade balance: longitudinal panel analysis for selected SSA countries
نویسندگان
چکیده
Purpose Motivated by recent rapid exchange rate depreciations, shrank economic growth, high inflation, and persistent trade deficits, this study examines the balance (TB) in face of dynamics stated macroeconomic factors, which are also important determinants TB. The symmetric test J-curve phenomenon for selected Sub-Saharan African (SSA) countries is revisited regard. uses panel data from 1970 to 2020 ten these longitudinal analysis with TB as dependent variable real rate, foreign domestic national incomes, openness set independent variables. Design/methodology/approach Because underlying involves a heterogeneous relatively short N long T, pooled mean group (PMG) (MG) models employed based on Hausman parameter consistency panels. Findings findings largely support income growth– worsening improvement hypotheses. Trade found mostly augment performance countries. results validated effect only 3/10 2/10 PMG MG models, respectively. divergence most attributed possible import compression institutional structure SSA Practical implications Given favorable effects countries, it recommended that place much emphasis import-substitution industrialization value addition their natural resources well investment-driven growth policies improve competitiveness exports reverse chronic deficits TBs. Originality/value This paper unique invoking analyze light its determinants, providing an update
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ژورنال
عنوان ژورنال: International Trade, Politics and Development
سال: 2023
ISSN: ['2632-122X', '2586-3932']
DOI: https://doi.org/10.1108/itpd-04-2023-0007