A Panel Data Analysis of the Validity of Uncovered Interest Rate Parity (UIRP) in Selected African Countries
| Autor: | Lezaasi LeneeTorbira, Deebii Nwiado |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Macroeconomics
Sociology and Political Science Cointegration media_common.quotation_subject Economics Econometrics and Finance (miscellaneous) Interest rate Exchange rate Empirical research Interest rate parity Political Science and International Relations Industrial relations Economics Financial econometrics Parity (mathematics) media_common Panel data |
| Zdroj: | Research in World Economy. 7 |
| ISSN: | 1923-399X 1923-3981 |
| DOI: | 10.5430/rwe.v7n2p15 |
| Popis: | The theory of interest rate parity (covered and uncovered) has been severally examined by scholars from different backgrounds. Results from empirical studies have been mixed. Macroeconomics of Nation States are not monolithic. These variations in macroeconomic behaviour conditions exchange rate movements and thus interest rate changes. Even temporal macroeconomic policies such as the Certificate of Capital Importation (CCI) in Nigeria and similar policy in Malaysia could distorts the application of the theory of interest rate parity across board. Given that such distortions are rift, it is difficult to obtain a perfect result for IRP (Covered or Uncovered). This paper examined uncovered interest rate parity using the methodology of applied financial econometrics of panel data in selected African countries. The result is wholesomely inconclusive. While parity is applicable between Nigeria, Kenya and Egypt, it is not the case with Botswana and Ghana. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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