Logo
Munich Personal RePEc Archive

Exchange Rate Undervaluation and Sectoral Performance of the South African Economy

Njindan Iyke, Bernard (2016): Exchange Rate Undervaluation and Sectoral Performance of the South African Economy.

[thumbnail of MPRA_paper_70343.pdf]
Preview
PDF
MPRA_paper_70343.pdf

Download (218kB) | Preview

Abstract

The paper uncovers the channels through which real exchange rate undervaluation influences the performance of the South African economy. We decompose the South African economy into three sectors, namely: agriculture, industry, and service. Using the OLS (with Newey-West and robust standard errors), and GMM estimation techniques; an annual time series data covering the period 1962-2014; and a standard regression model for each sector, we find: (i) real exchange rate undervaluation to exert positive impact on economic performance by enhancing agricultural sector, and industrial sector performance; (ii) real exchange rate undervaluation to exert a negative impact on economic performance by reducing the performance of the service sector.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.