AFRICA’S TRADE AND VOLATILITY IN EXCHANGE RATE: AN ECONOMETRIC CALCULATION
AFRICA’S TRADE AND VOLATILITY IN EXCHANGE RATE: AN ECONOMETRIC CALCULATION
Author(s): David Umoru, Mustafa IseduSubject(s): Economy, Supranational / Global Economy, Financial Markets, Socio-Economic Research
Published by: Universitatea SPIRU HARET - Faculty of Accounting and Financial Management
Keywords: Africa countries; export; exchange rate volatility; E-GARCH model;
Summary/Abstract: The study estimates effects of volatility in mutual exchange rate of a selection of African countries in relation to US dollar on aggregate exports of Africa countries from March 1, 2005 to March 30, 2018 using GMM estimator. This is indebted by the fears being upstretched as whether the variation in exchange rate of Africa currencies vis-à-vis US dollar in current time have stimulated export growth. The results show that current and historical volatility had negative and significant effects on aggregate exports of all selected Africa countries in the study. Also, speculation effect of exchange rate volatility is negative and significant for all countries except Liberia. The study advices Africa monetary authorities to certify total adherence to implementation of exchange rate stabilization policies.
Journal: Journal of Academic Research in Economics (JARE)
- Issue Year: 10/2018
- Issue No: 2
- Page Range: 218-238
- Page Count: 21
- Language: English
- Content File-PDF