The impact of exchange rate on exports in South Africa.

Ngondo, Mashilana and Khobai, Hlalefang (2018): The impact of exchange rate on exports in South Africa.

Abstract

The primary objective of this study is to assess the impact of exchange rate on exports in South Africa between the periods 1994 to 2016 and to establish whether a statistically significant relationship exists between exports and exchange rate. The study incorporated real interest rate, investments and inflation as control variables. By applying the Autoregressive Distributed Lag (ARDL) approach, this study empirically investigates the impact of real exchange rate on exports in South Africa. In testing for the unit root properties of the time series data, the variables were subjected to the Augmented Dickey-Fuller (ADF) and Philips Perron (PP) unit root tests. The results obtained reveal that exchange rate has a significant negative relationship with exports in South Africa.

• Item Type: MPRA Paper
• Language: English
• Keywords: Exchange rate, exports, Autoregressive Distribution Lag Model (ARDL), South Africa
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C50 - General; E - Macroeconomics and Monetary Economics > E0 - General > E00 - General; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations

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