The Sudan Demand for International Reserve: A Case of a Labour-Exporting Country

Ibrahim Ahmed Elbadawi

32 citations0/0 files storedEconomica

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Abstract

An empirical analysis of the demand for international reserves in the Sudan is presented, based on the error-correction model. This model is parametrically rich enough to allow the division of the effects into long-run influences, short-term adjustments, and proportional equilibrium impacts. Beside addressing conventional issues in reserve demand literature, the model explicitly incorporates the impact on reserve demand of remittances transferred by Sudanese nationals working abroad and the impact due to money market disequilibrium. The demand function is found to be stable and characterized by constant returns to scale. Copyright 1990 by The London School of Economics and Political Science.

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References

1987Co-Integration and Error Correction: Representation, Estimation, and Testing 1978Specification Tests in Econometrics 1981On the bias in flexible functional forms and an essentially unbiased form 1976The Exchange Rate, the Balance of Payments and Monetary and Fiscal Policy under a Regime of Controlled Floating 1981Optimal International Reserves: A Stochastic Framework 1985ERROR CORRECTION, PARTIAL ADJUSTMENT AND ALL THAT: AN EXPOSITORY NOTE*1981Stabilization Programs in Developing Countries: A Formal Framework (Programmes de stabilisation dans les pays en developpement: cadre formel) (Programas de estabilizacion en los paises en desarrollo: Un marco formal)1974The Demand for International Reserves by Developed and Less-Developed Countries

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