The Optimal Balance‐of‐Payments Strategy of a Less Developed Country*

Iyoha, Milton A.

doi:10.1111/j.1475-4932.1973.tb01944.x

Cited by 5 publications

(4 citation statements)

References 9 publications

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“…Also, the short-run estimates also revealed CUSUM of Squares 5% Significance that the estimate of the opportunity cost variable via the interest rate mechanism is sensitive to reserves. However, there is need to investigate further the determinant for reserves using an export driven model such as Iyoha's (1973), given the desire to promote export-led growth in a sustainable manner. This could be pursued using relatively more sophisticated econometric techniques.…”

Section: Resultsmentioning

confidence: 99%

“…We rely on a specifi cation in line with (Iyoha, 1973) where international reserve is a function of variability of export earnings (VEE) opportunity cost of holding reserves (OC), degree of openness of the economy (OPEN), and oil price (OP).We include GDP per capita (GPC), political stability index (PSI) and CO 2 emission (COE) as economic, social and environmental measures of sustainable development respectively. This represented below as; (1) Theoretically, the higher the magnitude of openness of an economy, the higher the optimal reserve holding as the increased openness implies greater exposure to external shocks.…”

Section: Theoretical Framework and Model Specifi Cationmentioning

confidence: 99%

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Determinants and sustainability of international reserves accumulation in Nigeria

Shuaibu¹,

Mohammed²

2014

IJSE

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Section: Resultsmentioning

confidence: 99%

Section: Theoretical Framework and Model Specifi Cationmentioning

confidence: 99%

Determinants and sustainability of international reserves accumulation in Nigeria

Shuaibu¹,

Mohammed²

2014

IJSE

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“…The higher the interest rate on foreign exchange holdings, the higher will be the optimal reserve level since a higher interest rate implies a lower opportunity cost of holding reserves. The higher the variability of export earnings is, that is, the greater the instability of export receipts, the higher will be the optimum level of reserve holdings, Iyoha (1973).…”

Section: Literature Reviewmentioning

confidence: 99%

Estimating the Demand for International Reserves Function in Nigeria: Evidence from Vector AutoRegressions

Oligbi¹,

Iyoha²

2021

IJRISS

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This study estimates the demand for international reserves function in Nigeria using vector auto-regressions, and annual time-series data for 1980-2017. The result obtained indicates that there is a stable, long-run relationship between international reserves, exports, openness, interest rate and export earnings volatility. Variance decomposition analysis shows the main sources of economic growth variations in Nigeria are attributable to "own shocks" and only slightly to other variables, namely, exports and openness. Thus, the study recommends that the government should adopt trade and exchange rate policies to promote exports in order to increase international reserve holdings and accelerate economic growth in Nigeria.

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“…Most of the studies regarding the inflation-globalization nexus are subject to multi-country analysis. Iyoha (1973) examined the association of inflation and openness for 33 less developed economies. The findings of the multivariate exercise revealed that the openness variable possesses an inverse but significant relationship with inflation.…”

Section: Analysis Of Literature Regarding Multi-country Studiesmentioning

confidence: 99%

Inflation Dynamics, Globalization and Monetary Policy: Empirical Evidence from Selected South and Southeast Asian Countries

Shahid¹,

Syed²,

Ahmad³

2020

Forman J. Econ. Stud.

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The present study investigated the impact of monetary policy and globalization on inflation. The study utilized an updated measure of globalization along with two other dimensions i.e., de facto and de jure measure of globalization to examine the nature of the globalization-inflation relationship. It measures the impact of monetary policy variables on inflation, ignoring random shocks as these are considered minor fractions for the inconsistency of the policy instruments. The study also used the Hodrick Prescott filter to calculate the domestic output gap to assess the notion that the changes in the domestic output gap are still relevant to inflation variations in the presence of globalization. Structural modeling of dynamic heterogeneous panel data estimation technique, which accounts for endogeneity and serial correlation issues has also been employed. The results of the study confirm that both global and domestic factors have significant and descriptive power for domestic inflation. Furthermore, the interest rate is found to be a major nominal anchor to affect inflation. The results of panel causality showed that there exists bidirectional causality from inflation to interest rate, while mixed results were found for analyzing monetary aggregates, exchange rate, globalization, and domestic output gap relationships.

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The Optimal Balance‐of‐Payments Strategy of a Less Developed Country*

Cited by 5 publications

References 9 publications

Determinants and sustainability of international reserves accumulation in Nigeria

Determinants and sustainability of international reserves accumulation in Nigeria

Estimating the Demand for International Reserves Function in Nigeria: Evidence from Vector AutoRegressions

Inflation Dynamics, Globalization and Monetary Policy: Empirical Evidence from Selected South and Southeast Asian Countries

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