- Title
- Real exchange rate volatility and its effect on trade flows: New evidence from South Africa
- Creator
- Takaendesa, Peter, Tsheole, Thapelo, Aziakpono, Meshach J
- Subject
- To be catalogued
- Date
- 2006
- Type
- text
- Type
- article
- Identifier
- http://hdl.handle.net/10962/469742
- Identifier
- vital:77290
- Identifier
- https://hdl.handle.net/10520/EJC21431
- Description
- This paper empirically re-examines the impact of real exchange rate volatility on South Africa's export flows to the United States for the period 1992:1 - 2004:4, using the two-country model of international trade. The exponential generalised autoregressive conditional heteroscedasticity (EGARCH) model is used to measure real exchange rate volatility. Cointegration and error- correction models are used to obtain the estimates of the cointegrating relations and the short-run dynamics, respectively. Further, variance decomposition analysis is used to show the dynamic adjustments of real exports to shocks in the fundamentals and the proportion thereof. The results obtained in this paper summarily provide evidence that real exchange rate volatility has a negative effect on real exports.
- Format
- 19 pages, pdf
- Language
- English
- Relation
- Studies in Economics and Econometrics, Takaendesa, P., Tsheole, T. and Aziakpono, M., 2006. Real exchange rate volatility and its effect on trade flows: New evidence from South Africa. Studies in Economics and Econometrics, 30(3), pp.79-97, Studies in Economics and Econometrics volume 30 number 3 79 97 2006 2693-5198
- Rights
- Publisher
- Rights
- Use of this resource is governed by the terms and conditions of the Sabinet Terms and Conditions Statement (https://www.sabinet.co.za/terms-conditions)
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- Visitors: 18
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Collections
Aziakpono, Meshach Jesse (Prof)
SDG 08. Decent Work and Economic Growth
RU Department of Economics and Economic History
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| View Details Download | SOURCE1 | Real exchange rate volatility and its effect on trade flows.pdf | 656 KB | Adobe Acrobat PDF | View Details Download |