EconPapers    
Economics at your fingertips  
 

Determinants of Exchange Rate Stability in Sudan (1991-2016)

Khalid Eltayeb Elfaki
Additional contact information
Khalid Eltayeb Elfaki: Faculty of Commercial Studies, University of Gezira, Wad Medani, Sudan.

International Journal of Economics and Financial Issues, 2018, vol. 8, issue 2, 33-39

Abstract: Exchange rate is one of the most important indicators of economic growth of a country and its stability has significant impact on international trade. This study aimed to investigate the effects of growth rate of real Gross Domestic Product (GDP), real money supply(M), inflation rate(INF), and trade openness (OP) on exchange rate (EXR) stability in Sudan. For this purpose Autoregressive Distributed Lag Model (ARDL) approach was applied to estimate long run and short run relationship among exchange rate determinants, annual data covering period (1991 -2016) have been analyzed. The results reveal that, there is a long run relationships between exchange rate and its determinants and statistically significant. An increase in growth rate of real GDP leads to stability in EXR. The Coefficient of Error Correction model reveals that exchange rate (EXR) will restore back to its equilibrium with speed of adjustment of 23.2% whenever there is a shock to its equilibrium.

Keywords: Exchange Rate; ARDL; Trade Openness. (search for similar items in EconPapers)
JEL-codes: F3 F16 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/6041/pdf (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/6041/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2018-02-5

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().

 
Page updated 2018-04-21
Handle: RePEc:eco:journ1:2018-02-5