The purpose of this paper is to test the validity of the purchasing power parity (PPP) in Africa in the context of a multivariate error-correction model. This approach allows for the consideration of long-run elasticities as well as the dynamics of the short-run adjustment of exchange rates to...

In this study, we investigate the time series properties of the inflation rate in all countries in Africa. In order to gauge whether the inflation rate is nonstationary or stationary, we employ: (i) two linear unit root tests based on different null hypotheses and (ii) nonlinear ESTAR-type unit...

In recent years, research on the effects of currency movements on trade has used disaggregated data and error-correction and cointegration models. The resulting short-run and long-run estimates can be used to isolate not only specific industry responses, but also dynamic effects such as the “J...