Open AccessThe Role of China’s Exchange Rate on the Trade Balance of Sub‑Saharan Africa: a Gravity Model Approach
Author(s) -
Humayun Khan,
Ubaid Khan,
Li Jun Jiang,
Muhammad Asif Khan,
Syed Hasanat Shah
Publication year - 2019
Publication title -
comparative economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.244
H-Index - 8
eISSN - 2082-6737
pISSN - 1508-2008
DOI - 10.2478/cer-2019-0032
Subject(s) - gravity model of trade , economics , china , exchange rate , absorption rate , balance (ability) , robustness (evolution) , elasticity (physics) , econometrics , international economics , geography , monetary economics , chemistry , physics , thermodynamics , medicine , physical medicine and rehabilitation , biochemistry , archaeology , chromatography , gene
This study seeks to investigate theimpactof China’sexchange rate onthe trade balance of 41 Sub‑aharan African countries for the period from 1994 to 2016. Using an augmented gravity model, the grouped and ungrouped results of the study confirm the elasticity and absorption approaches of the trade balance. Similarly, the robustness check, by dividing the sample period into two sub‑eriods (2005–016 and 1994–004), also confirms the elasticity and absorption approaches of the trade balance.