Exchange Rate Volatility and Non-Traditional Exports Performance: Zambia, 1965–1999
AbstractThis study estimated an error correction model of the impact of real effective exchange rate volatility on the performance of non-traditional exports for Zambia between 1965 and 1999. Using a generalized autoregressive conditional heteroscedasticity (GARCH) measure of real exchange rate volatility, the findings show that exchange rate volatility depresses exports in both the short run and the long run. The results also suggest that supportive macroeconomic factors are important in enhancing non-traditional exports in the country. This requires packaging a set of incentives aimed at removing anti-export bias policies so as to promote exports, particularly of non-traditional products, given their standing in the economic growth agenda for the country.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 26952.
Date of creation: Nov 2008
Date of revision:
Real exchange rate; volatility; GARCH; error correction model; nontraditional exports;
Find related papers by JEL classification:
- F30 - International Economics - - International Finance - - - General
- F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
- F31 - International Economics - - International Finance - - - Foreign Exchange
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