Balance of payments theories and the impact of currency devaluation with reference to the Gambia

Balance of payments theories have been developed to examine the impact of various factors in a nation's payments position. This thesis sets out to investigate the impact of currency devaluation in small LDC nations, particularly the Gambia. The Gambia has been struggling with balance of payment deficits brought about by many factors, amongst which external debt service payments have played a very significant role. The models recommended by the various theories are very closely examined in this endeavour followed by an empirical analysis to specifically determine the exact nature of the impact of currency devaluation to the economy of the Gambia.