Melesse, Wondemhunegn Ezezew (2011): The Dynamics between Real Exchange Rate Movements and Trends in Trade Performance: The Case of Ethiopia.
Download (347kB) | Preview
ABSTRACT Ethiopia’s exchange rate policies have been a bone of contention for concerned economic analysts and commentators alike. This study takes a new look at the record to explore the impact of exchange rate liberalization reforms on export growth in Ethiopia. I employ generalized method of moments estimators (GMM) techniques on time series data for the period 1981- 2009. The study does not support the widely held view that exchange rate reforms induce export growth. But world income was found to positively impact Ethiopia’s export receipts over time.
|Item Type:||MPRA Paper|
|Original Title:||The Dynamics between Real Exchange Rate Movements and Trends in Trade Performance: The Case of Ethiopia|
|Keywords:||KEYWORDS: Real Exchange Rate, Devaluation, Export Performance.|
|Subjects:||F - International Economics > F0 - General|
|Depositing User:||Wondemhunegn Ezezew Melesse|
|Date Deposited:||27. Feb 2011 19:30|
|Last Modified:||12. Feb 2013 13:48|
Acharya, S. (2010). Potential Impacts of the Devaluation of Nepalese Currency: A General Equilibrium Approach, Economic Systems, doi:10.1016/j.ecosys.2010.01.005
Alemayehu Geda (1999). The Structure and Performance of Ethiopia’s Financial Sector in the Pre and Post Reform Period: With Special Focus on Banking.
Anatolyev et al (2007). Instrumental Variables Estimation of Heteroskedastic Linear Models Using All Lags of Instruments.
Asmerom Kidane (1997). Exchange Rate Policy and Economic Reform in Ethiopia, AERC Research Paper No.54.
Bahmani-Oskooee et al (1991). Exports, Growth and Causality in LDCs: A re-examination, Journal of Development Economics 36, 405-415.
Bahmani-Oskooee and Hajilee (2009). The J-Curve at Industry Level: Evidence from Sweden-US Trade, Economic Systems 33, 83-92.
Bahmani-Oskooee and Mitzeta (2002). Do Nominal Devaluations Lead to Real Devaluations? Economic Letters 74, 385-391.
Bahmani-Oskooee et al (2008). Do Nominal Devaluations Lead to Real Devaluations? Evidence from 89 Countries, International Review of Economics and Finance 17, 644-670.
Ben U. Omojimite and Godwin Akpokodje (2010). The Impact of Exchange Rate Reforms on Trade Performance in Nigeria, Journal of Social Sciences 23(1), 53-62.
Ciuriak, Dan (2010). Supply and Demand Side Constraints as Barriers for Ethiopian Exports: Policy Options, b k p Development Research and Consulting, available at http://ssrn.com/abstract=1659655.
Deresse Degefaw (2001). The Parallel Foreign Exchange Market and Macroeconomic Performance in Ethiopia, AERC Research Paper No.107.
Edwards, S. (1986). Devaluation and Aggregate Economic activity: An Empirical Analysis of the Contractionary Devaluation Issue.
Ethiopian Development Research Institute, EDRI (2009). Ethiopian Social Accounting Matrix 2005/2006.
Greene, W. H. (2000). Econometric Analysis. 4th ed. Upper Saddle River, NJ: Prentice-Hall.
Halal El Ramly and Sahar M. Abdel-Haleim (2007). The Effect of Devaluation on Output in the Egyptian Economy: A Vector Autoregression Analysis.
Heritage 2011 Index of Economic Freedom, available at http://www.heritage.org/Index/Country/Ethiopia
International Monetary Fund (IMF), Various Issues.
Krugman, P and Taylor, L. (1978). Contractionary Effects of Devaluation, Journal of International Economics 8, 445-456.
National Bank of Ethiopia, NBE (2010). Annual Report (Unpublished Document), available at www.nbe.gov.et.
Reinhart, Carmen (1994). Devaluation, Relative Prices, and International Trade.
Seid Hassen (2010). The Devaluation of the Birr-a Layman’s Guide.
Taylor, Mark P. (1995). The Economics of Exchange Rates, Journal of Economic Literature,Vol. XXXIII : 13-47
Van Wijnbergen S V (1986). Exchange rate management and stabilization policies in Developing countries, Journal of Development Economics 23, 227-247.
Available Versions of this Item
- The Dynamics between Real Exchange Rate Movements and Trends in Trade Performance: The Case of Ethiopia. (deposited 27. Feb 2011 19:30) [Currently Displayed]