Testing Marshall-lerner Condition In Sub-saharan Africa

ABSTACTIn this study we test the Marshall-Lerner (ML) condition for six sub-Saharan African economies, Nigeria, Zambia, South Africa, Kenya, Cameroon and Sierra Leone. In particular, we use annual data on the log-linearity of real effective exchange rates, exports, imports, real gross domestic product of the sub-Saharan countries, balance of trade and real gross domestic product of the world, for the time period 1980– 2013, and employ techniques of vector error correction model. Specifically, we use dynamic ordinary least square and Johansen cointegration methods to estimate the elasticities c…