Exchange rate management and manufactured exports in Sub-Saharan Africa
AbstractThis paper presents an overview of the evolution of exchange-rate regimes in Africa and then attempts to assess empirically the impact of exchange-rate policy on manufactured export performance on a panel of major Sub-Saharan Africa countries over the 1970-92 period. We examine the impact of three exchange-rate policy indicators: real effective exchangerate changes, real exchange-rate volatility, and (model-based measures of) real exchange-rate misalignment. Export supply functions are estimated for three manufacturing industries (textile, chemicals, and metals) and two exchange-rate regimes: a fixed rates regime including six CFA Franc countries, and a more flexible regime represented by five non-CFA countries. Our findings show that exchange-rate management matters for export performance. This is evidenced both by the significant impact of changes in the real effective exchange rate and by the negative influence exerted independently by real exchange-rate misalignment. On the ... LâÃ©volution des rÃ©gimes de change en Afrique entre 1970 et 1992 est examinÃ©e dans ce document. Les effets de la politique de change sur les exportations de produits manufacturÃ©s de lâAfrique sub-saharienne sont Ã©galement examinÃ©s de maniÃ¨re empirique. Trois indicateurs de la politique de change sont plus particuliÃ¨rement Ã©tudiÃ©s: les variations du taux de change rÃ©el effectif, la volatilitÃ© du taux de change rÃ©el et son dÃ©faut dâalignement (mesurÃ© Ã partir dâun modÃ¨le). Des fonctions dâexportation ont Ã©tÃ© estimÃ©es pour trois branches de lâindustrie manufacturiÃ¨re (textile, chimie, mÃ©tallurgie), ainsi que deux rÃ©gimes de change: un rÃ©gime de taux de change fixes, reprÃ©sentÃ© par six pays de la zone CFA, et un second, plus flexible, reprÃ©sentÃ© par cinq pays nâappartenant pas Ã cette zone. Il en ressort que la politique de change influe largement sur les performances Ã lâexportation du fait des consÃ©quences importantes des variations du taux de c
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 61 (2000)
Issue (Month): 1 (February)
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Web page: http://www.elsevier.com/locate/devec
Other versions of this item:
- Khalid Sekkat & Aristomene Varoudakis, 2000. "Exchange rate management and manufactured exports in Sub-Saharan Africa," ULB Institutional Repository 2013/7342, ULB -- Universite Libre de Bruxelles.
- Khalid Sekkat & Aristomène Varoudakis, 1998. "Exchange-Rate Management and Manufactured Exports in Sub-Saharan Africa," OECD Development Centre Working Papers 134, OECD Publishing.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
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