Determinants of Trade Balance in West African Economic and Monetary Union (WAEMU): Evidence from heterogeneous panel analysis

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dc.contributor.authorKeho, Yaya
dc.date.accessioned2023-05-20T21:21:41Z
dc.date.available2023-05-20T21:21:41Z
dc.date.issued2021-09-03
dc.descriptionCogent Economics & Finance, Volume 9en_US
dc.description.abstractThis study investigates the determinants of the trade balance in West African and Monetary Union (WAEMU) over the period 1975–2017. We employ the Mean Group (MG) estimator along with the grouped mean version of Dynamic OLS (DOLS) and Fully Modified OLS (FMOLS) to deal with both endogeneity and cross-country heterogeneity. The results reveal that the trade balance is negatively related to domestic and foreign income whereas real effective exchange rate depreciation improves the trade balance in the long-run. However, the results do not confirm the short-run worsening of trade balance suggested by the J-curve. In the short-run, the trade balance is sensitive only to foreign real income but not to domestic income and real exchange rate. The country-level estimates show heterogeneity in the response of the trade balance to real exchange rate, domestic and foreign income. Overall, the findings of this study suggest that policies aimed at improving the trade balance should focus on the domestic production of imported goods, rather than devaluation.en_US
dc.description.sponsorshipACE: Statistics and Quantitative Economicsen_US
dc.identifier.citationKeho, Y. (2021). Determinants of Trade Balance in West African Economic and Monetary Union (WAEMU): Evidence from Heterogeneous Panel Analysis. Cogent Economics & Finance, 9(1), 1970870.en_US
dc.identifier.issn2332-2039
dc.identifier.uridoi.org/10.1080/23322039.2021.1970870
dc.identifier.urihttp://hdl.handle.net/123456789/1851
dc.language.isoenen_US
dc.publisherTaylor & Francisen_US
dc.subjectExchange rateen_US
dc.subjecttrade balanceen_US
dc.subjectpanel cointegrationen_US
dc.subjectWAEMUen_US
dc.subjectÉcole Nationale Supérieure de Statistique et d'Economie Appliquée d'Abidjan (ENSEA)en_US
dc.subjectSocial/Econ Scienceen_US
dc.titleDeterminants of Trade Balance in West African Economic and Monetary Union (WAEMU): Evidence from heterogeneous panel analysisen_US
dc.typeArticleen_US
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