Cover image for Relationship between the Foreign Exchange Regime and Macroeconomic Performance in Eastern Africa.
Relationship between the Foreign Exchange Regime and Macroeconomic Performance in Eastern Africa.
Title:
Relationship between the Foreign Exchange Regime and Macroeconomic Performance in Eastern Africa.
Author:
Fund, International Monetary.
ISBN:
9781475533965
Physical Description:
1 online resource (55 pages)
Series:
IMF Working Papers
Contents:
Cover -- Contents -- I. Introduction -- II. Foreign Exchange Regimes and Economic Growth -- A. Introduction -- B. Literature Review -- C. Data and Descriptive Analysis -- D. Empirical Specification -- E. Alternative Specification -- F. Conclusions and Policy Implications -- III. Foreign Exchange Regimes, Inflation Performance, and Exchange Rate Pass-Through -- A. Introduction -- B. Literature Review -- C. Descriptive Analysis -- D. Empirical Specification -- E. Empirical Results -- F. Conclusions and Policy Implications -- Tables -- 1a. Growth and the Exchange Regime, 1990-2010 -- 1b. Growth and the Exchange Regime, with Regime Index, 1990-2010 -- 2a. Non-agricultural Growth and the Exchange Regime, 1990-2010 -- 2b. Non-agricultural Growth and the Exchange Regime, with Regime Index, 1990-2010 -- 3a. Growth and the Exchange Regime, with Fundamental Equilibrium Exchange Rate (FEER) Residual, 1990-2010 -- 3b. Growth and the Exchange Regime, with FEER Residual and Regime Index, 1990-2010 -- 4a. Non-agricultural Growth and the Exchange Regime, with FEER Residual, 1990-2010 -- 4b. Non-agricultural Growth and the Exchange Regime, with FEER Residual and Regime Index, 1990-2010 -- 5. Inflation and the Exchange Regime, 1990-2010 -- 6. Inflation and the Exchange Regime, Alternative Specification, 1990-2010 -- Charts -- 1. Real GDP Growth Per Capita and Investment -- 2. Real GDP Growth Per Capita and Government Consumption -- 3. Real GDP Growth Per Capita and de Jure Exchange Regimes -- 4. Real GDP Growth Per Capita and de Facto Exchange Regimes -- 5. Inflation and Other Key Variables under Different Regimes -- 6. Nominal Effective Exchange Rate (Percent Change) -- 7. Inflation and Key Macroeconomic Indicators -- References -- Appendix A -- Appendix A: Tables -- A1. Countries in the Sample, Definition of Variables, and Sources.

A2. Descriptive Statistics for the Full Sample, 1990-2010 -- A3.1. Selected Variable Means by de Jure Exchange Regime, 1990-2010 -- A3.2. Selected Variable Means by de Facto Exchange Regime, 1990-2010 -- Appendix B -- Appendix B Tables -- B1. The IMF de Jure Regime Classification and our Reclassification Strategy -- B2.1. The IMF de Jure Regime Classification -- B2.2. The IMF de Jure Regime Classification (continued) -- B3.1. Reclassified Three Regime de Jure Classification -- B3.2. Reclassified Three Regime de Jure Classification (continued) -- B4. Bubula and Ökter-Robe and IMF de Facto Regime Classifications and Our Reclassification Strategy -- B5.1. Reclassified Three Regime de Facto Classification -- B5.2. Reclassified Three Regime de Facto Classification (continued) -- B6. Distribution of Regimes -- B7. Distribution of de Jure Regimes by Country -- B8. Distribution of de Facto Regimes by Country -- Appendix B Charts -- B1. Frequency Distribution of de Jure Exchange Regimes, 1990-2010 -- B2. Frequency Distribution of de Facto Exchange Regimes, 1990-2010 -- Appendix C -- Appendix C Table -- C1. The Exchange Rate Regression.
Abstract:
This study examines the relationship between the foreign exchange regime and macroeconomic performance in Eastern Africa. The study focuses on seven countries, five of which decisively liberalized their foreign exchange regimes. The study assesses the relationship between (i) growth and various determinants, including the exchange regime, the real exchange rate, and current account liberalization; and (ii) inflation and various determinants, including lagged inflation, the nominal exchange rate, the exchange regime, and liberalization. We find that in our sample, for the determinants of growth, investment and the real exchange rate are significant determinants but not the exchange regime or liberalization; and for inflation, the lagged inflation rate, nominal exchange rate, and the de facto regime are significant. Exchange rate pass-through is limited.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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