Financial Development, Exchange Rate Regimes, and Growth Dynamics

Financial Development, Exchange Rate Regimes, and Growth Dynamics

This paper utilizes data for African countries to analyze the extent to which financial development affects the dynamics of the relationship between exchange rate flexibility and economic growth. The findings indicate that financial development exe...

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Main Authors: Kassa, Woubet, Lartey, Emmanuel K.K.
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
EXCHANGE RATES
GROWTH DRIVERS
ECONOMIC GROWTH
PRODUCTIVITY
FINANCIAL DEVELOPMENT
TRADE LIBERALIZATION
OPENNESS
Online Access:http://documents.worldbank.org/curated/en/675111534786895810/Financial-development-exchange-rate-regimes-and-growth-dynamics
http://hdl.handle.net/10986/30289
id okr-10986-30289
recordtype oai_dc
spelling okr-10986-302892021-06-08T14:42:47Z Financial Development, Exchange Rate Regimes, and Growth Dynamics Kassa, Woubet Lartey, Emmanuel K.K. EXCHANGE RATES GROWTH DRIVERS ECONOMIC GROWTH PRODUCTIVITY FINANCIAL DEVELOPMENT TRADE LIBERALIZATION OPENNESS This paper utilizes data for African countries to analyze the extent to which financial development affects the dynamics of the relationship between exchange rate flexibility and economic growth. The findings indicate that financial development exerts a positive influence on the relationship between exchange rate flexibility and GDP growth as well as total factor productivity growth. The paper also documents a positive impact of trade openness on the relationship between exchange rate flexibility and growth. Moreover, the results show a strong and positive association between exchange rate flexibility and financial development. The findings, therefore, suggest that discussions and decisions on exchange rate policy should be undertaken with consideration for structural policies that address the development of the financial sector. In addition, the paper asserts that policy makers should adopt a stance that facilitates some flexibility in exchange rates to foster development of the financial infrastructure in these economies. 2018-08-23T17:12:32Z 2018-08-23T17:12:32Z 2018-08 Working Paper http://documents.worldbank.org/curated/en/675111534786895810/Financial-development-exchange-rate-regimes-and-growth-dynamics http://hdl.handle.net/10986/30289 English Policy Research Working Paper;No. 8562 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic EXCHANGE RATES
GROWTH DRIVERS
ECONOMIC GROWTH
PRODUCTIVITY
FINANCIAL DEVELOPMENT
TRADE LIBERALIZATION
OPENNESS
spellingShingle EXCHANGE RATES
GROWTH DRIVERS
ECONOMIC GROWTH
PRODUCTIVITY
FINANCIAL DEVELOPMENT
TRADE LIBERALIZATION
OPENNESS
Kassa, Woubet
Lartey, Emmanuel K.K.
Financial Development, Exchange Rate Regimes, and Growth Dynamics
geographic_facet Africa
Sub-Saharan Africa
relation Policy Research Working Paper;No. 8562
description This paper utilizes data for African countries to analyze the extent to which financial development affects the dynamics of the relationship between exchange rate flexibility and economic growth. The findings indicate that financial development exerts a positive influence on the relationship between exchange rate flexibility and GDP growth as well as total factor productivity growth. The paper also documents a positive impact of trade openness on the relationship between exchange rate flexibility and growth. Moreover, the results show a strong and positive association between exchange rate flexibility and financial development. The findings, therefore, suggest that discussions and decisions on exchange rate policy should be undertaken with consideration for structural policies that address the development of the financial sector. In addition, the paper asserts that policy makers should adopt a stance that facilitates some flexibility in exchange rates to foster development of the financial infrastructure in these economies.
format Working Paper
author Kassa, Woubet
Lartey, Emmanuel K.K.
author_facet Kassa, Woubet
Lartey, Emmanuel K.K.
author_sort Kassa, Woubet
title Financial Development, Exchange Rate Regimes, and Growth Dynamics
title_short Financial Development, Exchange Rate Regimes, and Growth Dynamics
title_full Financial Development, Exchange Rate Regimes, and Growth Dynamics
title_fullStr Financial Development, Exchange Rate Regimes, and Growth Dynamics
title_full_unstemmed Financial Development, Exchange Rate Regimes, and Growth Dynamics
title_sort financial development, exchange rate regimes, and growth dynamics
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/675111534786895810/Financial-development-exchange-rate-regimes-and-growth-dynamics
http://hdl.handle.net/10986/30289
_version_ 1764471660673499136

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