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Has Exchange Rate Variability Affected Tropical Non-Traditional


  • David Kihangire

    (Bank of Uganda)

  • David Potts

    (University of Bradford)

  • Prof. Sam Cameron

    (University of Bradford)


This study examines the effects of exchange rate variability on Uganda’s flowers exports during 1994-2001 by testing the central hypothesis that following the floating exchange rate regime, ‘Uganda’s exports of tropical flowers are negatively and significantly correlated with exchange rate variability.’ The absence of pure I(0) or I(1) in the data, and lack of endogeneity and simultaneous bias problems invites us to apply ARDL approach to cointegration and OLS. The results suggest that although Uganda’s flower exports are negatively correlated with exchange rate variability, the measured effects are insignificant.

Suggested Citation

  • David Kihangire & David Potts & Prof. Sam Cameron, 2005. "Has Exchange Rate Variability Affected Tropical Non-Traditional," International Trade 0505010, EconWPA.
  • Handle: RePEc:wpa:wuwpit:0505010
    Note: Type of Document - doc; pages: 22. This is a working paper. Any comments are welcome

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    More about this item


    Exchange rate variability; flowers exports; Uganda; dependent- economy;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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