Publications by authors named "Bazezew Endalew Abegaz"
Article Synopsis
- Ethiopia has employed exchange rate devaluations to tackle its trade deficit, garnering support from the UN and economists, but the effectiveness of this strategy remains debated among scholars.
- A study using the Non-linear Autoregressive Distributed Lag Model (NARDL) examines how real exchange rates asymmetrically affect Ethiopia's trade balance from 1992 to 2022, challenging the belief in a linear relationship.
- Findings indicate that while depreciations of the exchange rate improve the trade balance by approximately 0.843% in the long run, appreciations yield even greater improvements of around 15%, emphasizing the need for non-linear models in policymaking for better trade outcomes.
