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Euron i Subsahariska Afrika: Effekter av eurons reala växelkursförändringar för handel mellan CFA och BRIC
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2022 (Swedish)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The aim of this thesis is to examine the CFA region’s peg to the euro and how it affects the net exports between the CFA and its fastest growing trading partners, Brazil, Russia, India and China (BRIC). In order to examine this issue a model with time- and entity fixed effects has been applied to panel data including 20 countries during a 22-year time period. The findings are in line with existing theory and indicate that a real appreciation of the euro results in weakened net export for the CFA region vis-à-vis BRIC, this estimate is statistically significant at a level of 10 %. These results indicate that the Marshall-Lerner condition holds for the region in the short term. Foreign demand is the only variable that has an opposite sign from what the theory suggests, this negative estimated effect could possibly be due to the variable real GDP also reflecting foreign competitiveness, possibly correlating with increased foreign exports and in turn with domestic imports. This result is however not statistically significant at a 10 %-level. 

Place, publisher, year, edition, pages
2022. , p. 33
Keywords [en]
Real Exchange Rate, Net Exports, CFA, Fixed Effects, Currency Union
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-496621OAI: oai:DiVA.org:uu-496621DiVA, id: diva2:1737351
Subject / course
Economics
Educational program
Bachelor Programme in Business and Economics
Available from: 2023-02-20 Created: 2023-02-16 Last updated: 2023-02-20Bibliographically approved

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CiteExportLink to record
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