WHAT IS THE APPROPRIATE ESTIMATOR TO EXCHANGE RATE MODEL OF SUDAN ECONOMY

Eltahir, Yassin (2015) WHAT IS THE APPROPRIATE ESTIMATOR TO EXCHANGE RATE MODEL OF SUDAN ECONOMY. BULLETIN OF MATHEMATICS AND STATISTICS RESEARCH, 3 (4). pp. 1-10. ISSN 2348-0580

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Abstract

Estimating economic relations through model system is valuable, hence this study tackled the system of exchange rate as a part of Sudan economy model in order to provide key tools to the policy makers which can help in managing macroeconomic objectives. The suggested system of exchange rate comprise from five equations which are well identified. Applying OLS to the target equation in the system (exchange rate) clarified good specification of the equation, then it estimated from the system by using 2SLS, 3SLS and SURE. After evaluating the simulated target equation by different estimators, the SURE estimator is detected as appropriate estimator to the model. The results affirmed the importance of GDP and price level in explaining the exchange rate in the presence of direct relationship with GDP and inverse relationship with general price level. In addition to existence of an inverse relationship between exchange rate and government budget balance, current account balance as well as capital account balance, hence lowering these balances deficit will improve the exchange rate position.

Item Type: Article
Subjects: Business Administration
Divisions: College of Administrative and Financial Sciences - Abha > Administrative Sciences
Depositing User: yassin Fadlalla
Date Deposited: 22 Nov 2017 14:04
Last Modified: 22 Nov 2017 14:04
URI: http://eprints.kku.edu.sa/id/eprint/234

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