Front Matter

Front Matter Page

African Department

Authorized for distribution by Dhaneshwar Ghura April 2007

Contents

  • I. Introduction
  • II. Theoretical Background on Determinants of the ERER in Low-Income Countries
  • III. Empirical Applications to Low-Income Countries
  • IV. Data Issues and Econometric Methodology
  • V. Estimation Results: Single-Country Approach
  • VI. Estimation Results: Panel Evidence
  • VII. Application for Countries with Limited Data: Out-of-Sample Estimation of Eritrea’s ERER
  • VIII. Conclusions
  • Appendix
  • References
  • Boxes
  • 1. ERER Determinants for Developing Countries
  • 2. Econometric Methodology for Single-Country Estimations
  • 3. Econometric Methodology for Panel Estimation
  • Figures
  • 1. Exchange Rate Misalignments for Ethiopia
  • 2. Exchange Rate Misalignments for A Sample of Non-Oil Exporting Countries (4 variables)
  • 3. Exchange Rate Misalignments for A Sample of Non-Oil Exporting Countries (5 variables)
  • 4. Exchange Rate Misalignment for the Republic of Congo
  • 5. Estimated Relationship between Constant and Average GDP per Capita in Panel
  • 6. Estimated ERER Misalignment for Eritrea
  • Tables
  • 1. Single-Country Estimations: Model Selection
  • 2. Estimates of Cointegrating Vector for Balanced Panel of Non-Oil Exporting Countries
  • 3. Average Annual Change in ERER and Contributions from Fundamentals
  • 4. Estimates of Cointegrating Vector: Preferred Five-Variable Model
  • 5. Estimates of Long-Run Elasticities for Oil Exporters
In Search of Equilibrium: Estimating Equilibrium Real Exchange Rates in Sub-Saharan African Countries
Author: Mr. Joannes Mongardini and Mr. Alexander Chudik