Does Exchange Rate Variation Effect African Trade Flows?

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 tra...

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Bibliographic Details
Published in:Procedia economics and finance 2014, Vol.14, p.565-574
Main Authors: Serenis, Dimitrios, Tsounis, Nicholas
Format: Article
Language:English
Subjects:
E.U
Exchange Rate Volatility
Exports
sectoral exports
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Summary: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.
ISSN:2212-5671
2212-5671
DOI:10.1016/S2212-5671(14)00757-6