Exchange rate Policies and economic Performance in Sub-Saharan Africa

Course ID
Ethiopian Economics Association (EEA)
Mulat Demeke


A reform program me known as the structural adjustment program me (SAP) was introduced in the 1980s in over 30 sub-Saharan African (SSA) countries with poor growth performance and severe macroeconomic disequilibria. At the center of this program me is the exchange rate adjustment aimed at moving economic growth and stabilization by enhancing the incentives to produce traceable, particularly agricultural traceable. An examination of data from a sample of 30 SSA countries reveals that the outcome of currency depreciation has not been encouraging. Its impact on output and export was at best insignificant. It has also triggered a high rate of inflation. Current account balance was positively influenced by devaluation but this was largely due to import compression, rather than export expansion. A positive response may have been constrained by structural bottlenecks such as limited technological and administrative capacity, inadequate infrastructure, rising cost of inputs and imperfect markets.

Corporate Author:Ethiopian Economic Association/Ethiopian Economic Policy Research Institute (EEA/EEPRI)
Publisher:Ethiopian Economic Association (EEA)
Primary Descriptors:Foreign exchange rates – Government policy

Secondary Descriptor:Economic stabilization

Geographic Descriptors:Sub-Saharan Africa
Cataloge Date:03/02/2013
Broad Subject heading:Commercial policy
Call Number:330.05 ETH JOU
Serial Key Title:Ethiopian Journal of Economics
Publication catagory:Ethiopian Journal of Economics
Content type:EEA Publication
Year:October, 1992
Publication date:1992-03-02 00:00:00
Forum or Discussion date:2013-03-02 00:00:00
PDF file: Mulat Demeke_Exchange rate Policies and economic Performance in SubSaharan Africa.pdf
Place of publication:Addis Ababa, Ethiopia
Type of material:Serial (Journal)
Current frequency:Semiannual
Author: Mulat Demeke

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