This paper examines the effect of exchange rate volatility for a set of three African countries: Malawi, Morocco and South Africa to aggregate exports during the period of 1973: q1-1990:q1. It is claimed by some researchers that exchange rate volatility causes a reduction on the overall level of trade. Empirical researchers often utilize the standard deviation of the moving average of the logarithm of the exchange rate as a measure of exchange rate fluctuation. In this study we propose a new measure for volatility. Overall our results have suggested significant negative effects from volatility on exports for all the countries in our sample when a measure of unexpected fluctuation was used.
|Journal||Procedia Economics and Finance|
|Publication status||Published - 6 Nov 2014|
Bibliographical noteThe full text is also available from: http://dx.doi.org/10.1016/S2212-5671(14)00757-6
Under a Creative Commons license
- sectoral exports
- Exchange Rate Volatility