Journal of African Trade

Volume 4, Issue 1-2, December 2017, Pages 20 - 36

Effect of exchange rate volatility on trade in Sub-Saharan Africa☆

Authors
Bernardin Senadza*, bsenadza@ug.edu.gh, Desmond Delali Diaba
Department of Economics, University of Ghana, Legon, Accra, Ghana
*Corresponding author.
Corresponding Author
Bernardin Senadzabsenadza@ug.edu.gh
Received 20 February 2017, Revised 5 December 2017, Accepted 6 December 2017, Available Online 18 February 2018.
DOI
10.1016/j.joat.2017.12.002How to use a DOI?
Keywords
F1; F310; F320
Abstract

The volatile nature of exchange rates with the advent of floating regimes has received much attention in economic research. The volatility is generally perceived as negatively affecting international trade. While theoretical predictions and empirical outcomes appear mixed, the balance seems to tilt in favour of this perception. Applying the pooled mean-group estimator of dynamic heterogeneous panels technique to data for eleven Sub-Saharan African economies over the period 1993 to 2014, this paper uncovers no significant effects of exchange rate volatility on imports. In the case of exports, however, the study finds a negative effect of volatility in the short-run, consistent with the above view, but a positive impact in the long-run.

Copyright
© 2017 Afreximbank. Production and hosting by Elsevier B.V. All rights reserved.
Open Access
This is an open access article under the CC BY-NC license (http://creativecommons.org/licences/by-nc/4.0/).

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Journal
Journal of African Trade
Volume-Issue
4 - 1-2
Pages
20 - 36
Publication Date
2018/02/18
ISSN (Online)
2214-8523
ISSN (Print)
2214-8515
DOI
10.1016/j.joat.2017.12.002How to use a DOI?
Copyright
© 2017 Afreximbank. Production and hosting by Elsevier B.V. All rights reserved.
Open Access
This is an open access article under the CC BY-NC license (http://creativecommons.org/licences/by-nc/4.0/).

Cite this article

TY  - JOUR
AU  - Bernardin Senadza
AU  - Desmond Delali Diaba
PY  - 2018
DA  - 2018/02/18
TI  - Effect of exchange rate volatility on trade in Sub-Saharan Africa☆
JO  - Journal of African Trade
SP  - 20
EP  - 36
VL  - 4
IS  - 1-2
SN  - 2214-8523
UR  - https://doi.org/10.1016/j.joat.2017.12.002
DO  - 10.1016/j.joat.2017.12.002
ID  - Senadza2018
ER  -