On The Link between Real Exchange Rate and Domestic Investment: Asymmetric Evidence from Africa
Mohsen Bahmani-Oskooee and Abera Gelan ()
Additional contact information
Mohsen Bahmani-Oskooee and Abera Gelan: University of Wisconsin-Milwaukee
Authors registered in the RePEc Author Service: Mohsen Bahmani-Oskooee
Journal of Economic Development, 2019, vol. 44, issue 3, 1-17
Abstract:
Exchange rate changes are said to affect the level of domestic direct investment in either direction. In this paper we consider the experience of each of the 18 countries in Africa. When a linear model is used, we find that the real effective exchange rate has significant short-run effects on domestic investment in three countries and long-run effects in five countries. However, when a nonlinear model was used, the number of countries rose to 13 and seven respectively. Furthermore, in almost all countries, the short-run and long-run effects were asymmetric
Keywords: Domestic investment; Real exchange rate, Asymmetry analysis, Africa (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
http://jed.or.kr/full-text/44-3/1.pdf (application/pdf)
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:jed:journl:v:44:y:2019:i:3:p:1-17
Access Statistics for this article
Journal of Economic Development is currently edited by Sung Y. Park
More articles in Journal of Economic Development from Chung-Ang Unviersity, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sung Y. Park ().