The Dynamics between Real Exchange Rate Movements and Trends in Trade Performance: The Case of Ethiopia

Melesse, Wondemhunegn Ezezew (2011): The Dynamics between Real Exchange Rate Movements and Trends in Trade Performance: The Case of Ethiopia.

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
• Language: English
• Keywords: Real Exchange Rate, Devaluation, Export Performance
• Subjects: F - International Economics > F0 - General > F00 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B22 - Macroeconomics; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; A - General Economics and Teaching > A1 - General Economics > A10 - General

References

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