The Sudan Demand for International Reserve: A Case of a Labour-Exporting Country
An empirical analysis of the demand for international reserves in the Sudan is presented, based on the error-correction model. This model is parametrically rich enough to allow the division of the effects into long-run influences, short-term adjustments, and proportional equilibrium impacts. Beside addressing conventional issues in reserve demand literature, the model explicitly incorporates the impact on reserve demand of remittances transferred by Sudanese nationals working abroad and the impact due to money market disequilibrium. The demand function is found to be stable and characterized by constant returns to scale. Copyright 1990 by The London School of Economics and Political Science.
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Volume (Year): 57 (1990)
Issue (Month): 225 (February)
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