IDEAS home Printed from https://ideas.repec.org/a/taf/rseexx/v30y2006i3p79-97.html
   My bibliography  Save this article

Real Exchange Rate Volatility And Its Effect On Trade Flows: New Evidence From South Africa

Author

Listed:
  • P Takaendesa
  • T Tsheole
  • M Aziakpono

Abstract

This paper empirically re-examines the impact of real exchange rate volatility on South Africa's export flows to the United States for the period 1992:1 - 2004:4, using the two-country model of international trade. The exponential generalised autoregressive conditional heteroscedasticity (EGARCH) model is used to measure real exchange rate volatility. Cointegration and error- correction models are used to obtain the estimates of the cointegrating relations and the short-run dynamics, respectively. Further, variance decomposition analysis is used to show the dynamic adjustments of real exports to shocks in the fundamentals and the proportion thereof. The results obtained in this paper summarily provide evidence that real exchange rate volatility has a negative effect on real exports.

Suggested Citation

  • P Takaendesa & T Tsheole & M Aziakpono, 2006. "Real Exchange Rate Volatility And Its Effect On Trade Flows: New Evidence From South Africa," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 30(3), pages 79-97, December.
    • Handle: RePEc:taf:rseexx:v:30:y:2006:i:3:p:79-97
    DOI: 10.1080/10800379.2006.12106418
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10800379.2006.12106418
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10800379.2006.12106418?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. James Temitope Dada, 2020. "Asymmetric effect of exchange rate volatility on trade in sub-Saharan African countries," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 37(2), pages 149-162, July.

    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:taf:rseexx:v:30:y:2006:i:3:p:79-97. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rsee .

    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.