Waal, Annari de; Eyden, Reneé van - Economic Research Southern Africa (ERSA) - 2012
We develop a structural cointegrated vector autoregressive (VAR) model with weakly exogenous foreign variables, suitable for a small open economy like South Africa. This type of model is known as an augmented vector error correction model (VECM), referred to by VECX*. We compile the foreign...