Previous page | New search |
The free AfricaBib App for Android is available here
Periodical article | Leiden University catalogue | WorldCat |
Title: | Real interest rate parity and two structural breaks: African countries evidence |
Authors: | Su, Chi-Wei Chang, Hsu-Ling Liu, Yan |
Year: | 2013 |
Periodical: | African Development Review (ISSN 1467-8268) |
Volume: | 25 |
Issue: | 4 |
Pages: | 478-484 |
Language: | English |
Geographic terms: | Africa South Africa |
Subject: | interest rates |
External link: | https://onlinelibrary.wiley.com/doi/10.1111/1467-8268.12043/pdf |
Abstract: | This study applies P.K. Narayan and S. Popp's (2010) unit-root test with two endogenous breaks to assess the validity of long-run real interest rate parity (RIRP) via investigating the non-stationary properties of the real interest rate convergence relative to South Africa for ten African countries. This method has been proven to be more powerful than the other unit root models with two breaks (Narayan and Popp, 2013). The authors' findings clearly indicate that RIRP holds true for five countries, which implies that the choices and effectiveness of the monetary and fiscal policies in the African economies will be highly influenced by external factors originating from South Africa. The results have important policy implications for the African countries under study (Algeria, Botswana, Ivory Coast, Egypt, Mauritius, Morocco, Nigeria, Zambia, Tunisia and Uganda). Bibliogr., note, ref., sum. [Journal abstract] |