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dc.description.abstractThe use of exchange rate devaluation has recently re-emerged as a stabilization tool to correct macroeconomic imbalances in developing countries, as was the case under the structural adjustment programmes during the debt crisis of the 1980s. There has been increased use of active exchange rate policies to enhance economic activity and safeguard lives and livelihoods from the consequences of recent economic crises. At the same time, public debt has also re-emerged as one of the issues at the centre of economic and political debate in Africa, as governments have resumed debt accumulation to invest in infrastructure and social spending as part of efforts to recover from the effects of recent economic shocks. Despite the current prominence of debt management and exchange rate depreciation issues, there have been very few recent empirical studies looking at the relationship between these economic fundamentals. The main objective of the present paper is therefore to examine the extent to which exchange rate depreciation affects external debt in Africa, in both the short and the long run, taking into consideration countries’ exchange rate regimes and natural resource intensity. The study applies the panel cointegration method by estimating the autoregressive distributed lag model to allow for the assessment of both the short- and long-term effects of exchange rate developments on external debt. The results indicate that in countries with relatively fixed exchange rate regimes, devaluation is more likely to result in a reduction of the external debt burden, while in countries with flexible exchange rate regimes, devaluation is more likely to enhance the impact of exports on external debt reduction. To some extent, the results suggest that flexible exchange rates may not be operating at their optimal levels to ensure a significant negative impact of exchange rate devaluation on external debt.en
dc.titleExchange rate devaluations and external debt management in Africaen
uneca.subject.fulltaxonomyUNBIS::ECONOMIC DEVELOPMENT AND DEVELOPMENT FINANCE::MONETARY ISSUES::FLOATING EXCHANGE RATESen
uneca.subject.fulltaxonomyUNBIS::ECONOMIC DEVELOPMENT AND DEVELOPMENT FINANCE::MONETARY ISSUES::FOREIGN EXCHANGE RATESen
uneca.subject.fulltaxonomyUNBIS::ECONOMIC DEVELOPMENT AND DEVELOPMENT FINANCE::DEVELOPMENT FINANCE::DEBT MANAGEMENTen
uneca.subject.fulltaxonomyUNBIS::ECONOMIC DEVELOPMENT AND DEVELOPMENT FINANCE::MONETARY ISSUES::DEVALUATIONen
uneca.subject.fulltaxonomyUNBIS::ECONOMIC DEVELOPMENT AND DEVELOPMENT FINANCE::MONETARY ISSUES::DEVALUATIONen
uneca.subject.fulltaxonomyUNBIS::ECONOMIC DEVELOPMENT AND DEVELOPMENT FINANCE::BANKING AND INVESTMENT::DEBTen
uneca.subject.fulltaxonomyUNBIS::GEOGRAPHICAL DESCRIPTORS::AFRICAen
uneca.subject.fulltaxonomyUNBIS::GEOGRAPHICAL DESCRIPTORS::AFRICAen
uneca.creatorCorporate.fulltaxonomyCorporate Authors::United Nations. Economic Commission for Africa. Macroeconomic Policy Divisionen
ags.creatorCorporateUnited Nations. Economic Commission for Africa. Macroeconomic Policy Divisionen
ags.subjectThesaurusFLOATING EXCHANGE RATESen
ags.subjectThesaurusFOREIGN EXCHANGE RATESen
ags.subjectThesaurusDEBT MANAGEMENTen
ags.subjectThesaurusDEVALUATIONen
ags.subjectThesaurusDEVALUATIONen
ags.subjectThesaurusDEBTen
ags.subjectThesaurusAFRICAen
ags.subjectThesaurusAFRICAen
ags.descriptionNotesThe Library also has edition in French with title"Dévaluations des taux de change et gestion de la dette extérieure en Afrique"en
ags.descriptionNotesIncludes Reference and annexes.en
ags.publisherPlaceAddis Ababa:en
ags.publisherNameUN. ECA,en
dc.date.accessioned2025-02-03T14:05:27Z
dc.date.available2025-02-03T14:05:27Z
dc.date.issued2024-08
dc.identifier.urihttps://hdl.handle.net/10855/50305
uneca.workflow.processedtrue
uneca.language.supporteden
dc.format.extent20 p. :ill.
dc.languageeng
dc.typeWorking paper
ags.creatorCorporateUnited Nations. Economic Commission for Africa. Macroeconomic Policy Division
ags.subjectThesaurusFLOATING EXCHANGE RATES
ags.subjectThesaurusFOREIGN EXCHANGE RATES
ags.subjectThesaurusDEBT MANAGEMENT
ags.subjectThesaurusDEVALUATION
ags.subjectThesaurusDEBT
ags.subjectThesaurusAFRICA
ags.subjectClassification02.12.00 MONETARY ISSUES
ags.availabilityNumber2024
ags.availabilityNumberb099585
ags.availabilityLocationECA-HQ
ags.rights.termsofusepublic
ags.JNb099585


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