By Ivohasina Fizara Razafimahefa
This publication deals perception into overseas alternate and overseas direct funding competitiveness in Africa. It examines regulations usually used to augment overseas competitiveness in Sub-Saharan African economies: trade price coverage and productivity-related coverage.
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Extra resources for International Competitiveness in Africa: Policy Implications in the Sub-Saharan Region (Advanced Studies in Theoretical and Applied Econometrics)
Sample text
Causality in mean is confirmed to exist in 26 of the 27 countries of sub-Saharan Africa. Interestingly, our method confirms the existence of causality in variance from the exchange rate to the price index in more than two-thirds of the sample countries. Causality in variance is confirmed in 19 of the 27 countries of sub-Saharan Africa. 3. 3. ) Country Cameroon Chad Congo, Dem. Rep. 3. ) Country Zimbabwe Asia Korea, Rep. Philippines Malaysia Thailand Indonesia Latin America Brazil Mexico Bolivia Colombia Costa Rica Dominican Rep.
1 Granger Causality Tests In this section we empirically investigate the effectiveness of the exchange rate policy and productivity policy in bringing about stronger trade competitiveness. The pass-through mechanism from exchange rate to inflation is perhaps the most important issue to be analyzed when considering the exchange rate policy to promote international competitiveness. With this in mind, we employ various empirical techniques to verify such pass-through mechanism, or the causality between exchange rate and domestic inflation.
While the widespread discussion of competitiveness may suggest that it has an accepted definition and measures, these detractors argue that this is not the case, at least in the science of economics. As Lall (2001) has pointed out, the concept was originally conceived as a basis for strategic analyses in business school literature. Companies compete in markets for goods and resources. They measure competitiveness using relative market shares or profitability and they implement competitiveness strategy to increase their performance.