The mediating role of oil price in the export-exchange rate nexus for selected African economies: Evidence from MATNARDL model

石油价格在部分非洲经济体出口汇率关系中的中介作用:来自MATNARDL模型的证据

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Abstract

This research investigates the potential influence of extreme exchange rate asymmetry on export commerce using the instance of leading oil and non-oil exporting African economies, namely Nigeria, Ghana, Congo, Gabon, Algeria, and Morocco, within the context of MANTARDL. In addition, the analysis disentangled the positive (appreciation) and negative (depreciation) components of the exchange rate to explore if exchange rate considerations show a differential effect on the export trade. The findings for the six countries are different depending on whether the currency rate is flexible, fixed, or managed. According to MATNARDL's results, an inverted J-curve may be seen in both Nigeria and Ghana. As an additional note, (minor, moderate and major) asymmetries in exchange rate modeling nexus in oil-exporting countries in the African continent should not be neglected. Acceptable policy suggestions are provided in the main text of the work.

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