The Dynamics between Real Exchange Rate Movements and Trends in Trade Performance: The Case of Ethiopia
AbstractABSTRACT 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29161.
Date of creation: 01 Mar 2011
Date of revision:
KEYWORDS: Real Exchange Rate; Devaluation; Export Performance.;
Find related papers by JEL classification:
- F0 - International Economics - - General
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-03-12 (Africa)
- NEP-ALL-2011-03-12 (All new papers)
- NEP-OPM-2011-03-12 (Open Economy Macroeconomics)
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