December 2018

The effect of real effective exchange rate on balance of payments in Ethiopia: A co-integrated VAR approach

This study investigated the relationship between real effective exchange rate and balance of payment in Ethiopia using annual data spanning the period of 1976 to 2015. The analysis was based on a cointegrated vector autoregressive approach. The methodology of the study begins with Augmented Dickey-Fuller stationarity tests of the data and the Johansen cointegration rank test that revealed current account, real gross...

Author(s): Teamrat Kahssay Gebremariam, Muhdin Mohammedhusen Batu and Sisay Tola