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Has Exchange Rate Variability Affected Tropical Non-Traditional

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Author Info

  • David Kihangire

    (Bank of Uganda)

  • David Potts

    (University of Bradford)

  • Prof. Sam Cameron

    (University of Bradford)

Abstract

This study examines the effects of exchange rate variability on Uganda’s flowers exports during 1994-2001 by testing the central hypothesis that following the floating exchange rate regime, ‘Uganda’s exports of tropical flowers are negatively and significantly correlated with exchange rate variability.’ The absence of pure I(0) or I(1) in the data, and lack of endogeneity and simultaneous bias problems invites us to apply ARDL approach to cointegration and OLS. The results suggest that although Uganda’s flower exports are negatively correlated with exchange rate variability, the measured effects are insignificant.

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Bibliographic Info

Paper provided by EconWPA in its series International Trade with number 0505010.

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Length: 22 pages
Date of creation: 14 May 2005
Date of revision:
Handle: RePEc:wpa:wuwpit:0505010

Note: Type of Document - doc; pages: 22. This is a working paper. Any comments are welcome
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Web page: http://128.118.178.162

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Keywords: Exchange rate variability; flowers exports; Uganda; dependent- economy;

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