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Exchange rate policy and export performance of WAMZ countries


  • Balogun, Emmanuel Dele


This study examines the effect of independent exchange rate policy, relative to other determinants, on global export performance of WAMZ countries. The regression results show that exports originating from the Zone to the rest of the world are influenced positively by domestic output, export prices and exchange rate devaluations, but negatively by import price and economic performance of the major global trading partner, proxied by the US GDP. This result is not universal as the Gambia, Ghana and Guinea total exports functions show that exchange rate policy penalized exports contrary to the Nigerian case in which the coefficient estimate is significant and positive. The study infers that these results are consistent with theoretical expectation given the ironical divergence in export basket. Although they are all primary commodity exporters, Nigeria’s exports is mainly crude oil, and a priori expectation is that rapid economic growth or booms in the US should lead to increased demand for energy (healthy competitions). In conclusion, the study infers that since independent flexible exchange rate policy makes no difference to the Zonal export performance ex ante, but have great potential for global exports collectively, they could explore an OCA to enhance both intra- and global inter-regional export trade.

Suggested Citation

  • Balogun, Emmanuel Dele, 2007. "Exchange rate policy and export performance of WAMZ countries," MPRA Paper 6233, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:6233

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    References listed on IDEAS

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    Cited by:

    1. Menji, Sisay, 2010. "Export Performance and Determinants in Ethiopia," MPRA Paper 29427, University Library of Munich, Germany.

    More about this item


    Exchange rate policy; export trade; panel data regression model; WAMZ;

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F1 - International Economics - - Trade
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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