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

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  • Melesse, Wondemhunegn Ezezew

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.

Suggested Citation

  • Melesse, Wondemhunegn Ezezew, 2011. "The Dynamics between Real Exchange Rate Movements and Trends in Trade Performance: The Case of Ethiopia," MPRA Paper 29316, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:29316
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    References listed on IDEAS

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    More about this item

    Keywords

    Real Exchange Rate; Devaluation; Export Performance;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • A10 - General Economics and Teaching - - General Economics - - - General

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