Akademik Veri Yönetim Sistemi
EconWorld 2021 Tbilisi, Tbilisi, Gürcistan, 23 - 25 Eylül 2021
The purpose of this study is to examine the macroeconomic determinants of the balance of payment performance of African countries. The study employed the cointegration approach to panel analysis on data from 1990-2020 for a panel of 20 Sub-Sahara African countries. The main macroeconomic factors considered in the study are; the exchange rate, interest rate, national and foreign income, price index and trade openness. The trade balance constructed as the natural logarithm of the ratio of each country’s exports to imports constituted the dependent variable in the study. Basing on international trade theories such as the imperfect competition model, the theories of absolute and comparative advantage, and the J-curve effect, the research findings reveal that the interest rate, domestic income and the exchange rate are the most critical factors determining the BOP performance of African countries. Appropriate policy proposals with industrialization as the crux are made based on the findings of the study.