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La dynamique d’ajustement des taux de change réels dans la zone Franc CFA

Author

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  • Cécile Couharde

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Issiaka Coulibaly
  • Olivier Damette

Abstract

The aim of this paper is to analyse the adjustment process of real effective exchange rates towards their equilibrium level for the cfa zone countries over the period 1985-2007. Accordingly, we estimate a panel smooth transition error correction model in order to take into account non-linear phenomena. In particular, we show that the adjustment process of real effective exchange rates is indeed asymmetric while this asymmetry differs substantially between countries. This last result tends to show the difficulty to apply a single exchange rate policy in the cfa zone and rather calls for further coordination and policy harmonization between the countries of the zone. Classification JEL : C23, F31, O1
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Suggested Citation

  • Cécile Couharde & Issiaka Coulibaly & Olivier Damette, 2012. "La dynamique d’ajustement des taux de change réels dans la zone Franc CFA," Post-Print hal-01385816, HAL.
    • Handle: RePEc:hal:journl:hal-01385816
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    1. Cashin, Paul & Cespedes, Luis F. & Sahay, Ratna, 2004. "Commodity currencies and the real exchange rate," Journal of Development Economics, Elsevier, vol. 75(1), pages 239-268, October.
    2. Cécile Couharde & Issiaka Coulibaly & Olivier Damette, 2011. "Misalignments and Dynamics of Real Exchange Rates in the CFA Franc Zone," Working Papers hal-04140955, HAL.
    3. Mr. Etienne B Yehoue & Gilles J. Dufrénot, 2005. "Real Exchange Rate Misalignment: A Panel Co-Integration and Common Factor Analysis," IMF Working Papers 2005/164, International Monetary Fund.
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    5. Virginie Coudert & Cécile Couharde & Valérie Mignon, 2010. "Taux de change des pays exportateurs de matières premières. L'importance des termes de l'échange et de la monnaie d'ancrage," Revue économique, Presses de Sciences-Po, vol. 61(3), pages 499-509.
    6. Lane, Philip R. & Milesi-Ferretti, Gian Maria, 2007. "The external wealth of nations mark II: Revised and extended estimates of foreign assets and liabilities, 1970-2004," Journal of International Economics, Elsevier, vol. 73(2), pages 223-250, November.
    7. Yasser Abdih & Charalambos Tsangarides, 2010. "FEER for the CFA franc," Applied Economics, Taylor & Francis Journals, vol. 42(16), pages 2009-2029.
    8. Nelson C. Mark & Donggyu Sul, 2003. "Cointegration Vector Estimation by Panel DOLS and Long‐run Money Demand," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(5), pages 655-680, December.
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    10. Mr. Magnus Saxegaard & Mr. Stephane Roudet & Mr. Charalambos G Tsangarides, 2007. "Estimation of Equilibrium Exchange Rates in the WAEMU: A Robustness Analysis," IMF Working Papers 2007/194, International Monetary Fund.
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    Citations

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    Cited by:

    1. Drama Bedi Guy Herve, 2017. "Estimation of the Impact of Monetary Policy on Economic Growth: The Case of Cote d Ivoire in Line with SVAR Methodology," Applied Economics and Finance, Redfame publishing, vol. 4(4), pages 66-83, July.
    2. Issiaka Coulibaly, 2014. "Competitiveness and growth within the CFA franc zone: Does the switch to the Euro matter?," International Economics, CEPII research center, issue 139, pages 1-18.
    3. Amir H. Mozayani & Sanaz Parvizi, 2016. "Exchange Rate Misalignment in Oil Exporting Countries (OPEC): Focusing on Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(2), pages 261-276, Spring.
    4. Emmanuelle Quillérou & Laure Zakrewski & Katim Touré & Gabriel Sarr & Halimatou Sadyane Ba & Katia Frangoudes & Talla Gueye & Samba Sow & Moussa Sall & Diaminatou Sanogo, 2019. "Investir dans la gestion durable des terres au Sénégal pour atténuer les conflits d’usage. Synthèse des quatre cas d’étude ELD au Sénégal : Forêt classée de Pata (Kolda), Kamb (Louga), Mbar Diop (Thiè," Working Papers hal-02418418, HAL.
    5. BIKAI, J. Landry & OWOUNDI F., Ferdinand, 2016. "Does the choice of an exchange rate regime limits exchange rate misalignments? The example of sub-Saharan African countries," MPRA Paper 89110, University Library of Munich, Germany.
    6. Issiaka Coulibaly, 2013. "Competitiveness and growth within the CFA franc zone: does the switch to the euro matter?," Erudite Working Paper 2013-04, Erudite.
    7. Coulibaly, Issiaka & Gnimassoun, Blaise, 2013. "Optimality of a monetary union: New evidence from exchange rate misalignments in West Africa," Economic Modelling, Elsevier, vol. 32(C), pages 463-482.
    8. Souleymane Ndao & Nikolay Nenovsky & Kiril Tochkov, 2019. "Does monetary integration lead to income convergence in Africa? a study of the CFA monetary area," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 18(2), pages 67-85, June.

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    Keywords

    [Pas de mot-clé];

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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