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Burcu Aydin
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African Department

Authorized for distribution by Vitaliy Kramarenko

Contents

  • I. Introduction

  • II. Data

  • III. Methodology and Results

    • A. Macroeconomic Balance Approach

    • B. Equilibrium Real Exchange Rate Approach

    • C. External Sustainability Approach

    • D. Purchasing Power Parity Approach

  • IV. Potential for Bias in Results

  • V. Conclusion

  • Reference

  • Appendix

  • I. Unit Root Test Results

  • Tables

  • 1. Summary Statistics Across Geographic and Economic Regions, 1973–2008

  • 2. Macroeconomic Balance Estimation Results (Dependent Variable: CAB/GDP)

  • 3. Macroeconomic Balance Assessment of Sub-Saharan Africa

  • 4. Macroeconomic Balance Estimation Results with Nonoverlapping Four-year-Averages

  • 5. Equilibrium Real Exchange Rate Estimation Results

  • 6. Equilibrium Real Exchange Rate Estimation Results Controlling for Armed Conflict and Oil Production

  • 7. External Sustainability Assessment of Sub-Saharan Africa

  • 8. Purchasing Power Parity Estimation Results

  • 9. Panel Unit Root Test Result for Real Exchange Rate

  • 10. Panel Unit Root Test Results for Current Account Balance

  • 11. Panel Unit Root Test Result for Relative Income per Capita

  • 12. Panel Unit Root Test Results for Relative Fiscal Balance

  • 13. Panel Unit Root Test Result for Relative Population Growth

  • 14. Panel Unit Root Test Result for Relative Economic Growth

  • 15. Panel Unit Root Test Result for Initial Net Foreign Assets

  • 16. Panel Unit Root Test Result for Terms of Trade

  • 17. Panel Unit Root Test Result for Oil Trade Balance

  • 18. Panel Unit Root Test Result for Relative Dependency Ratio

  • 19. Panel Unit Root Test Result for Aid

  • 20. Panel Unit Root Test Result for Remittance

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Exchange Rate Assessment for Sub-Saharan Economies
Author:
Burcu Aydin