Scholars Archive

Title

Democracy and Exchange Rate Regime Choice in Sub-Saharan Africa

Authors

Rita Biswas, University at Albany, State University of New YorkFollow

Publication Date

2-12-2020

Streaming Media

Abstract

Theories and empirical models of exchange rate regime choice have established that generally, economic considerations play a primary role in the regime choice decision and political factors play a secondary role in this policy decision. However, in frontier and transition economies, political economy factors play the more dominant role, to ensure electability. Using a sample of 49 countries in sub-Saharan Africa spanning the period 2000 to 2016 and an ordered logit regression model, we find supporting evidence that as the degree of democratization increases, there is a stronger preference for fixed exchange rates, implying that stability is more desirable than an independent monetary policy for re-election.

Comments

To learn more about Dr. Rita Biswas, Associate Professor in the School of Business at the University at Albany, please click on the link below:

https://www.albany.edu/business/faculty/rita-biswas

Recommended Citation

Biswas, Rita, "Democracy and Exchange Rate Regime Choice in Sub-Saharan Africa" (2020). Campus Conversations in Standish. 17.
https://scholarsarchive.library.albany.edu/campus_conversations/17