You searched for: Content Type Working Paper Remove constraint Content Type: Working Paper Publishing Institution United Nations University Remove constraint Publishing Institution: United Nations University Political Geography Africa Remove constraint Political Geography: Africa Publication Year within 10 Years Remove constraint Publication Year: within 10 Years Topic Bilateral Relations Remove constraint Topic: Bilateral Relations
- Author: Mahvash Saeed Qureshi, Charalambos G. Tsangarides
- Publication Date: 03-2011
- Content Type: Working Paper
- Institution: United Nations University
- Abstract: This paper revisits the link between exchange rate regimes and trade in the context of Africa's exchange rate arrangements. Applying an augmented gravity model that includes measures of currency unions and pegged regimes, the paper compares Africa's experience with that of the world. Our results suggest that both currency unions and direct pegs promote bilateral trade in Africa vis-à-vis more flexible exchange rate regimes,and that their effect is almost double for the region than that for an average country in the world sample. Further, we find evidence that the effect of conventional pegs is at least as large as that of currency unions in Africa, and that the benefits of fixed exchange rate regimes stem through channels in addition to reduced exchange rate volatility.
- Topic: Economics, International Trade and Finance, Bilateral Relations, Monetary Policy
- Political Geography: Africa