IDEAS home Printed from https://ideas.repec.org/a/blg/msudev/v14y2022i1p43-50n7.html
   My bibliography  Save this article

Exchange Rate Volatility And Manufacturing Output In Ecowas Economies

Author

Listed:
  • IHEZIE Okwuchukwu Ezra

    (Centre for the Study of the Economies of Africa)

Abstract

This study examined the impact of exchange rate volatility on manufacturing output in the ECOWAS, using time series data spanning from 1970 to 2019. The study employed panel data analysis to examine the relationship between exchange rate volatility and manufacturing output among all the ECOWAS countries. GARCH was used to establish the existence of volatility; Dumitrescu & Hurlin Granger non-causality test for causality direction between manufacturing and exchange rate, while Panel fixed, and random effect model was used to assess the magnitude of the effects of exchange rate volatility on manufacturing output in ECOWAS. The result of the volatility test from GARCH confirmed the presence of volatility in Exchange rates across all the countries in ECOWAS. Furthermore, the random effect model results showed that exchange rate volatility has a positive and significant impact on manufacturing output in ECOWAS. Based on the findings of this study, it is therefore recommended that exchange rate policies such as floating exchange rates and exchange rate sterilized intervention that will pave the way for competitiveness should be formulated by monetary authorities in ECOWAS.

Suggested Citation

  • IHEZIE Okwuchukwu Ezra, 2022. "Exchange Rate Volatility And Manufacturing Output In Ecowas Economies," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 14(1), pages 43-50, June.
    • Handle: RePEc:blg:msudev:v:14:y:2022:i:1:p:43-50:n:7
    DOI: https://doi.org/10.54989/msd-2022-0007
    as

    Download full text from publisher

    File URL: https://msdjournal.org/wp-content/uploads/vol14issue1-7.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.54989/msd-2022-0007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:blg:msudev:v:14:y:2022:i:1:p:43-50:n:7. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Camelia Oprean-Stan (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.html .

    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.