Applied Social Science / Education

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Browsing Applied Social Science / Education by Subject "Cote d’Ivoire"

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    Asymmetric Effects of Real Exchange Rate on Trade Balance in Cote d’Ivoire: Evidence from Nonlinear ARDL Approach
    (Redfame, 2021-04-19) Keho, Yaya
    This paper analyses the effects of real exchange rate on the trade balance in Cote d’Ivoire using times series from 1975 to 2017. Although many studies have investigated this issue, most of them assume that this relationship is symmetric. This paper relaxes this assumption employing the nonlinear autoregressive distributed lag (ARDL) model by Shin, Yu and Greenwood-Nimmo (2014). The results show that trade balance responds stronger to negative shocks in real exchange rate than to positive ones in the long-run, while the short-run response of trade balance is symmetric.
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    REAL EXCHANGE RATE AND TRADE BALANCE DYNAMICS IN COTE D’IVOIRE
    (Econjournals, 2021) Keho, Yaya
    This study examines the relationship between real exchange rate and trade balance in Cote d’Ivoire during the period from 1975 to 2017. The study employs the ARDL bounds testing approach to cointegration developed by Pesaran et al. (2001) in the examination of this nexus. Cointegration analysis and error correction modeling are used to determine the long run as well as short run dynamics, between real exchange rate and trade balance. The empirical results show negative and significant effects of domestic income on trade balance both in the short and long run. Further, a depreciation of real exchange rate causes an improvement in the trade balance in a significant way both in the short and long run. This suggests that exchange rate variations are effective for increasing balance of trade for Cote d’Ivoire.