Search

This paper investigates the effects of trade openness on the level of investment and the rate of economic growth in Kenya using annual time series data. The aggregate trade openness and trade-policy induced openness are evaluated. Controlling for a number of factors, aggregate trade openness is found to have positively affected the level of investment and the rate of economic growth, although the effect on the latter is statistically insignificant. On the other hand, we find trade-policy induced openness to have negatively and significantly affected investment and the rate of economic growth. Granger Causality tests suggest that a change in trade openness influences the long-term rate of economic growth through the interaction with physical capital growth in the case of Kenya. [ABSTRACT FROM AUTHOR]

This paper tests the hypothesis of a negative relation between openness and inflation in the context of African countries. A dynamic model of inflation in which openness enters alternately as an endogenous and exogenous variable is estimated with different panel data estimation procedures. The paper finds no robust evidence that openness served as a mechanism to restrain inflation in the region. On the contrary, the results suggest that increased openness, treated as an endogenous variable, is associated with higher inflation on holding constant such factors as food supply constraint and level of economic development which are found significant co-determinants. [ABSTRACT FROM AUTHOR]

The object of this paper is to examine the fiscal consequences of exchange rate adjustment in the context of selected African economies. The paper identifies the salient channels through which the exchange rate is expected to influence fiscal variables, describes the behaviour of these indicators in the sample countries, and formulates and estimates an empirical model that links the real exchange rate with real fiscal revenue and expenditure. It finds that currency devaluation - where launched - has, on balance, resulted in real depreciation and that the latter has increased real fiscal revenue, with imperceptible effect on real expenditures. The fiscal deficit is found to exert no statistically significant influence on the behaviour of the real exchange rate. Ce document examine les conséquences budgétaires de l'ajustement du taux de change dans un certain nombre de pays africains. Il détermine les principales voies par lesquelles le taux de change est censé influer sur les variables budgétaires, décrit le comportement de ces indicateurs dans les pays concernés, élabore et évalue un modèle empirique établissant un lien entre le taux de change réel et les recettes et dépenses budgétaires réelles. Il constate que la dévaluation, l&agrave: où elle est intervenue, s'est en définitive traduite par une véritable dépréciation, qui a entraâné un accroissement des recettes budgétaires réelles et exercé un effet imperceptible sur les dépenses réelles. En outre, sur le plan statistique, le déficit budgétaire n'exerce pas d'effet significatif sur le comportement. [ABSTRACT FROM AUTHOR]

Provides information on a study investigating the implications of parallel exchange markets for export adjustment to official currency depreciation. Information on the estimation of the model; Conclusions reached.

Summary This study assesses the role of human capital (HK) on FDI inflows to sub-Saharan Africa. It uses panel data for the period 1980–2012 to asses if changing skill needs influence FDI inflows. Several measures of HK are used to assess whether the quality of labor explains FDI flows over the study period. Various versions of an FDI model were estimated and the results show that all measures of HK have a significant influence on FDI, as are the traditional variables. There is no evidence of the increasing importance of HK on FDI over time, probably reflecting the type of FDI flowing into SSA. [ABSTRACT FROM AUTHOR]