Manuscript Title:

TOPIC, EXCHANGE RATE AND GROWTH OF AFRICAN ECONOMIES: A STUDY OF SELECTED SUB-SAHARAN AFRICAN COUNTRIES, 1999- 2021

Author:

AMBAM, AWAH PRIDY, HERBERT, UGOCHINYERE, BABARINDE, GBENGA FESTUS, SUNDAY ATADIOSE, J.U.J ONWUMERE

DOI Number:

DOI:10.5281/zenodo.10373636

Published : 2023-12-10

About the author(s)

1. AMBAM, AWAH PRIDY - Department of Banking and Finance, University of Nigeria.
2. HERBERT, UGOCHINYERE - Department of Banking and Finance, University of Nigeria.
3. BABARINDE, GBENGA FESTUS - Department of Banking and Finance, University of Nigeria.
4. SUNDAY ATADIOSE - Department of Banking and Finance, University of Nigeria.
5. J.U.J ONWUMERE - Professor, Department of Banking and Finance, University of Nigeria.

Full Text : PDF

Abstract

This study evaluated the contribution of exchange rate on economic growth to in thirty-eight (38) African countries over the period 1999 to 2021. The objectives of the study were to specifically: i) Determine the effect of Real effective Exchange rate on growth of Sub-Saharan economies. ii) Evaluate the effect of monetary mass on growth of the Sub-Saharan economies. iii) Determine the effect of exchange rate volatility on growth of the Sub-Saharan economies. The research utilized secondary data sourced from the International Monetary Fund’s Financial Access Survey and the World Bank’s World Development Indicators. Furthermore, the thesis employed the two-step system generalized method of moments dynamic panel model estimator in order to ascertain the impact of exchange rate on economic growth in African economies; A study of Sub Saharan Africa countries 1999-2021. The findings of the study revealed that, real effective Exchange rate had a statistically non significant impact on growth of Selected Sub-Saharan economies. ii) Monetary mass had a statistically non significant effect on growth of Selected Sub-Saharan economies. iii) Exchange rate volatility had a negative and non significant effect on growth of the Selected Sub-Saharan. Recommendation The government should build up foreign exchange reserves to buffer against external shocks and maintain exchange rate stability. This will help reduce vulnerability to sudden capital outflows and the negative impact on economic growth.


Keywords

TOPIC, EXCHANGE RATE AND GROWTH OF AFRICAN ECONOMIES: A STUDY OF SELECTED SUB-SAHARAN AFRICAN COUNTRIES, 1999- 2021