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Effects of Increasing Exchange Rate on the Export Performance in Sri Lanka: A Gravity Model Approach

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  • Jaysinghe, Uthpala
  • Fry-McKibbin, Renée

Abstract

This paper attempts to identify the causal relationship between rising of real effective exchange rate and the export performance in Sri Lanka for the period of 2000 to 2016. Study employed a Gravity model approach using a panel data set of 174 trading partner countries. The study finds that there is no significant impact of rising of exchange rate on export performance during the period of study. It is also found that GDP, distance, FDI, country being landlocked, global financial crisis and ending of civil war have a significant impact on export performance of the country.

Suggested Citation

  • Jaysinghe, Uthpala & Fry-McKibbin, Renée, 2019. "Effects of Increasing Exchange Rate on the Export Performance in Sri Lanka: A Gravity Model Approach," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 20(01), December.
    • Handle: RePEc:ags:saeasj:359040
    DOI: 10.22004/ag.econ.359040
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    References listed on IDEAS

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