IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v4y2020i9p222-227.html
   My bibliography  Save this article

Export Trade and Real Exchange Rate Dynamics in Sub-Saharan Africa: A Dynamic Panel Analysis

Author

Listed:
  • Kenneth Chikezie Anyalechi

    (Department of Finance and Banking, University of Port Harcourt, Nigeria.)

  • Emeka Okereke

    (Department of Finance and Banking, University of Port Harcourt, Nigeria.)

  • Ikechukwu S. Nnamdi

    (Department of Finance and Banking, University of Port Harcourt, Nigeria.)

Abstract

The effect of exchange rate variation on international trade becomes one of the critical issues for economic policy makers. Debates around this issue come to the fore because there is no consensus on whether variations in exchange rate affect foreign trade activity. In this direction, Khosa, Botha and Pretorius, (2015) argued that a cursory look at raw data without in-depth analysis, makes it difficult to establish the nature of the relationship between exchange rate variations and trade, while lack of clarity on this subject increases the risk of improper planning by international trade partners as well as implementation of economic policies. Hence, real exchange rate is widely considered an important macroeconomic measure which underlies the adoption of certain economic policies (Kurtovic, Halili & Maxhuni, 2017; Hunegnaw, 2017). Even though the study in this area is not yet conclusive, there is a general consensus among professionals that exchange rate influences trade balance in the long run (Chaudhary, Hashmi & Khan, 2016).

Suggested Citation

  • Kenneth Chikezie Anyalechi & Emeka Okereke & Ikechukwu S. Nnamdi, 2020. "Export Trade and Real Exchange Rate Dynamics in Sub-Saharan Africa: A Dynamic Panel Analysis," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(9), pages 222-227, September.
    • Handle: RePEc:bcp:journl:v:4:y:2020:i:9:p:222-227
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-4-issue-9/222-227.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/virtual-library/papers/export-trade-and-real-exchange-rate-dynamics-in-sub-saharan-africa-a-dynamic-panel-analysis/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Goodness C. Aye & Rangan Gupta & Prudence S. Moyo & Nehrunaman Pillay, 2015. "The Impact of Exchange Rate Uncertainty on Exports in South Africa," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-14.
    2. Bogale Hunegnaw, Fetene, 2017. "Real Exchange Rate and Manufacturing Export Competitiveness in Eastern Africa," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 32(4), pages 891-912.
    3. Christelle Meniago & Joel Hinaunye Eita, 2017. "Does Exchange Rate Volatility Deter Trade in Sub-Saharan Africa?," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 62-69.
    4. Wilson Chamunorwa & Ireen Choga, 2015. "Exchange Rate Volatility and Export Performance in South Africa: (2000-2014)," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(10), pages 1174-1186, October.
    5. Christelle Meniago & Joel Hinaunye Eita, 2017. "The effects of exchange rate changes on Sub-Saharan Africa trade," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 9(3), pages 213-230.
    6. Wilson Chamunorwa & Ireen Choga, 2015. "Exchange Rate Volatility and Export Performance in South Africa: (2000-2014)," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(10), pages 1174-1186.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Izunna Chima Anyikwa & Lehlohonolo Domela, 2022. "Asymmetric effects of exchange rate volatility on trade flows in BRICS economies," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 46(3), pages 224-247, July.
    2. Yaya KEHO, 2021. "Asymmetric Effects of Real Exchange Rate on Trade Balance in Cote d’Ivoire: Evidence from Nonlinear ARDL Approach," Applied Economics and Finance, Redfame publishing, vol. 8(3), pages 9-21, May.
    3. Andrew Phiri, 2018. "Nonlinear Relationship between Exchange Rate Volatility and Economic Growth," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 61(3), pages 15-38.
    4. Innocent U Duru & Millicent Adanne Eze & Abubakar Sadiq Saleh & Benedict I Uzoechina & Gabriel O Ebenyi & Ekechi Chukwuka, 2022. "Exchange Rate Volatility and Exports: The Nigerian Scenario," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 12(1), pages 11-28.
    5. Fourie, Justin & Pretorius, Theuns & Harvey, Rhett & Henrico, Van Niekerk & Phiri, Andrew, 2016. "Nonlinear relationship between exchange rate volatility and economic growth: A South African perspective," MPRA Paper 74671, University Library of Munich, Germany.
    6. Hussaini Umaru & Aguda Niyi A. & Nordiana Osagie Davies, 2018. "The Effects of Exchange Rate Volatility on Economic Growth of West African English-Speaking Countries," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(4), pages 131-143, October.
    7. Alegwu, Friday O. & Aye, Goodness C. & Asogwa, Benjamin C., 2017. "Asymmetric Effect of Real Exchange Rate Volatility on Agricultural Products Export: A Case Study," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 70(3), pages 261-279.
    8. Julius Loermann, 2018. "The Impact of CHF/EUR Exchange Rate Uncertainty on Swiss Exports to the Eurozone: Evidence from a Threshold VAR," FIW Working Paper series 189, FIW, revised Feb 2019.
    9. Mohsen Bahmani‐Oskooee & Hanafiah Harvey, 2021. "Are the effects of exchange‐rate volatility on commodity trade between the U.S. and Mexico symmetric or asymmetric?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 2998-3027, April.
    10. Abolfazl Shahabadi & Shiva Amjadian & Samineh Ghasemifar & Masoume Shafieian, 2023. "The effect of the national brand on high-tech exports in selected countries," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-19, December.
    11. Ngondo, Mashilana & Khobai, Hlalefang, 2018. "The impact of exchange rate on exports in South Africa," MPRA Paper 85079, University Library of Munich, Germany.
    12. Goodness C. Aye & Laurence Harris, 2019. "The effect of real exchange rate volatility on income distribution in South Africa," WIDER Working Paper Series wp-2019-29, World Institute for Development Economic Research (UNU-WIDER).
    13. Mohsen Bahmani-Oskooee & Augustine C. Arize, 2020. "On the Asymmetric Effects of Exchange Rate Volatility on Trade Flows: Evidence from Africa," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(4), pages 913-939, March.
    14. Trust R. Mpofu, 2021. "The determinants of real exchange rate volatility in South Africa," The World Economy, Wiley Blackwell, vol. 44(5), pages 1380-1401, May.
    15. Norashida Othman & Zulkornain Yusop & Mohd Mansor Ismail & Syamsul Herman Mohammad Afandi, 2021. "Energy Tax and the Downstream Palm Oil Trade Competitiveness Nexus in Malaysia: An Application of GMM Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 593-599.
    16. Pabai Fofanah, 2020. "Effects of Exchange Rate Volatility on Trade: Evidence from West Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 12(3), pages 32-52.
    17. Abiola John Asaleye & Rotdelmwa Filibus Maimako & Henry Inegbedion & Adedoyin Isola Lawal & Adeyemi A. Ogundipe, 2021. "Real Exchange Rate and Manufacturing Performance in Nigeria," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 10, March.
    18. Bahmani-Oskooee, Mohsen & Arize, Augustine C., 2022. "The effect of exchange rate volatility on U.S. bilateral trade with Africa: A symmetric and asymmetric analysis," Economic Systems, Elsevier, vol. 46(1).
    19. Oguzhan Ozcelik, 2022. "Does the Foreign Trade-Driven Competitive Power of Transition Economies Converge Toward that of EU14 Countries? Evidence from Fourier Panel Unit Root Test with Sharp and Smooth Breaks," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(36), pages 257-282, June.
    20. Konstantinos Gkillas & Rangan Gupta & Christian Pierdzioch, 2018. "Forecasting (Good and Bad) Realized Exchange-Rate Volatility: Is there a Role for Realized Skewness and Kurtosis?," Working Papers 201879, University of Pretoria, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:4:y:2020:i:9:p:222-227. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://www.rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.