Browsing by Author "Shimeles Bizuneh"

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    The Effect of Parallel Foreign Exchange Market on Economic Performance: The Case of Some Selected African Countries
    (A.A.U, 2024-09-18) Shimeles Bizuneh; Zerayehu Sime (PhD)
    This paper examines the effect of parallel foreign exchange market rate on Economic performance using panel data (extracted from the WB, Transparency international, OECD and central Banks) from 26 some selected African countries over the period from 2007 to 2023. The study applied a one-step system gmm dynamic panel data model to achieve its objectives. The finding results indicate that parallel foreign exchange market premium, Devaluation and Remittance inflow are positively associated with economic growth in some selected African countries. Balance of payment and aid are negatively associated with economic growth in the selected countries. Inflation and corruption are not significantly associated with economic growth in these countries. Based on the findings, the policy implication is that governments should be dedicated to minimize and gradually bring unification of the gap between parallel and official exchange for better economic performance. This can be done harmonizing all institutions that play great roles under the deal of exchange markets. Keywords: Parallel foreign exchange market, Economic performance, Selected African countries