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dc.contributor.advisorTipoy, Christian.
dc.creatorMsomi, Simiso.
dc.date.accessioned2017-01-26T07:58:59Z
dc.date.available2017-01-26T07:58:59Z
dc.date.created2015
dc.date.issued2015
dc.identifier.urihttp://hdl.handle.net/10413/13943
dc.descriptionMaster of Commerce in Economics. University of KwaZulu-Natal, Westville 2015.en_US
dc.description.abstractThe dissertation examines the impact of exchange rate misalignments on the economic growth of five countries in the SACU region: South Africa, Lesotho, Namibia, Swaziland and Botswana, using annual data from 1995 to 2012. First and second generation unit root tests are used in order to take into account the existence of structural breaks and cross-sectional dependence. After determining the existence of a cointegration relationship using both Pedroni (2004) and Westerlund (2007) tests, exchange rate misalignments are computed as a deviation of exchange rates from their long-run determinants; estimated using the Pesaran et al.(1997; 1999) mean-group and pooled mean-group. We found that by using the mean-group estimator, the different currencies are overvalued as suggested by Asfaha and Huda (2002) and Saayman (2007), for both the South African and Botswanan currency. Focusing on the results from the mean group, as this estimator is efficient in the presence of cross-sectional dependence in the data, we assessed the impact of misalignment on economic growth using the system-GMM due to the existence of autocorrelation and endogeneity. We found that exchange rate misalignments are not significant in explaining economic growth, even when controlling for terms of trade and openness.en_US
dc.language.isoen_ZAen_US
dc.subjectForeign exchange rates.en_US
dc.subjectForeign exchange rates--Developing countries.en_US
dc.subjectForeign exchange.en_US
dc.subjectEconomic development.en_US
dc.subjectTheses--Economics.en_US
dc.subjectExchange rate misalignment.en_US
dc.subjectSouth African Customs Union (SACU)en_US
dc.titleThe impact of exchange rate misalignments on economic growth of the South African Customs Union.en_US
dc.typeThesisen_US


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