Investigating the oil price exchange rate nexus: evidence from Africa

Simeon Coleman (), Juan Cuestas and Estefanía Mourelle

No 03/2012, NCID Working Papers from Navarra Center for International Development, University of Navarra

Abstract: In this paper we aim to provide further insides into the importance of real oil price as a determinant of real exchange rates for a pool of African countries. While this relationship has been explored substantially for many industrialised economies, African countries have received little attention. By means of cointegration techniques and nonlinear dynamics we find that, for some of these countries, shocks in the real price of oil are particularly important in determining the real exchange rates, even in the long run. These results would be of interest for policymakers in order to deal more effectively with exchange rate policy decisions, aiming at promoting economic growth in the area.

Keywords: Oil prices; Real Exchange Rates; Cointegration; Nonlinearities (search for similar items in EconPapers)
JEL-codes: C32 F15 F31 O55 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2012-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Investigating the oil price-exchange rate nexus: Evidence from Africa (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:nva:unnvaa:wp03-2012

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