The Role of China’s Exchange Rate on the Trade Balance of Sub‑Saharan Africa: a Gravity Model Approach

Hameed Khan; Umair Khan; Li Jun Jiang; Muhammad Asif Khan; Syed Hasanat Shah

doi:10.2478/cer-2019-0032

Authors

Hameed Khan Ph.D., Scholar at School of Economics, Jilin University, Changchun, China; Kohat University of Science & Technology, Kohat, Pakistan
Umair Khan Ph.D., Scholar at Kohat University of Science & Technology, Kohat, Pakistan
Li Jun Jiang Professor at School of Economics, Jilin University, Changchun, China
Muhammad Asif Khan Assistant Professor, University of Kotli, Kotli, Pakistan
Syed Hasanat Shah Professor at School of Economics, Jilin University, Changchun, China

DOI:

https://doi.org/10.2478/cer-2019-0032

Keywords:

bilateral trade, China, SSA

Abstract

This study seeks to investigate theimpactof China’sexchange rate onthe trade balance of 41 Sub‑aharan African countries for the period from 1994 to 2016. Using an augmented gravity model, the grouped and ungrouped results of the study confirm the elasticity and absorption approaches of the trade balance. Similarly, the robustness check, by dividing the sample period into two sub‑eriods (2005–016 and 1994–004), also confirms the elasticity and absorption approaches of the trade balance.

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