Title: Exchange Rate Volatility and Export Competitiveness Nexus
Abstract: The objective of this study was to analyze the impact of real exchange rate volatility on export competitiveness of the South African economy during the period 2000:q1 to 2011:q4. Volatility of the real exchange rate was computed using the GARCH approach. The one-step Engle-Granger error correction model (ECM) was applied to investigate the magnitudes to which real exchange rate volatility affects the economy’s export competitiveness in both short- and long-run periods. Results from the estimated export competitiveness function indicate that real exchange rate volatility demonstrates adverse impacts on export competitiveness; with relatively more pronounced detrimental impact being demonstrated in the long-run period. KEYWORDS: exchange rate volatility, export competitiveness, error correction model
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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Cited By Count: 2
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