IDEAS home Printed from https://ideas.repec.org/a/adb/adbadr/2087.html
   My bibliography  Save this article

Real Interest Rate Parity and Two Structural Breaks: African Countries Evidence

Author

Listed:
  • Chi-Wei Su
  • Hsu-Ling Chang
  • Yan Liu

Abstract

This study applies Narayan and Popp's () unit-root test with two endogenous breaks to assess the validity of long-run real interest rate parity (RIRP) via investigating the non-stationary properties of the real interest rate convergence relative to South Africa for ten African countries. This method has been proven to be more powerful than the other unit root models with two breaks (Narayan and Popp, ). Our findings clearly indicate that RIRP holds true for five countries, which implies that the choices and effectiveness of the monetary and fiscal policies in the African economies will be highly influenced by external factors originating from South Africa. Our results have important policy implications for these African countries under study.

Suggested Citation

  • Chi-Wei Su & Hsu-Ling Chang & Yan Liu, 2013. "Real Interest Rate Parity and Two Structural Breaks: African Countries Evidence," African Development Review, African Development Bank, vol. 25(4), pages 478-484.
    • Handle: RePEc:adb:adbadr:2087
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohsen Bahmani‐Oskooee & Tsangyao Chang & Zahra (Mila) Elmi & Omid Ranjbar, 2019. "Real Interest Rate Parity And Fourier Quantile Unit Root Test," Bulletin of Economic Research, Wiley Blackwell, vol. 71(3), pages 348-358, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adb:adbadr:2087. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John Anyanwu (email available below). General contact details of provider: https://edirc.repec.org/data/afdbgci.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.