The effects of currency devaluation on Ethiopia’s major export commodities: The case of coffee and khat: Evidence from the vector error correction model and the Johansen co-integration test

Elias, Abdelkaf; Dachito, Amsalu; Abdulbari, Shabu

doi:10.1080/23322039.2023.2184447

Cited by 9 publications

(7 citation statements)

References 26 publications

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“…Elius et al, [2] conducted a study to establish the effect of currency devaluation on major export commodities in Ethiopia using the Vector Error Collection Model and the Johansen co-integration. The study revealed that devaluation of the real effective exchange rate had a positive and significant relationship with the value of major export commodities in the long run meaning that a decrease in the value of domestic currency promotes exports in the long run.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Effects of Exchange Rate Variability on Coffee Export Growth in Tanzania

Mbunduki

2024

IJAE

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Exchange rate movement is perceived as a very important factor in influencing the performance of the agriculture sector. When the currency of the exporting country depreciates against the trading partners’ currencies tends to stimulate demand and improve export earnings. An increase in value of the currency against the other trading partners’ currencies (e.g. USD) tend to affect the costs of production that may affect aggregate agricultural supply. However, the linkage of the exchange rate and agricultural export growth in particular traditional exports such as coffee has never been properly and intensively documented for appropriate decision-making in Tanzania. Therefore, this study was set to assess how exchange rate variability has affected coffee export growth in Tanzania. The study made use of time series data from 1991 to 2022 using the vector error collection model (VECM). Given the influences other than the real effective exchange rate on the export of coffee growth, we discriminately incorporated inflation rate, discount rate, and money supply, as the independent variables. Yearly data (1991-2022) obtained from the Bank of Tanzania and the International Coffee Organization were used for the analysis. The results from this study reveal that the real effective exchange rate has an enormous positive impact on coffee export growth in the long run. This implies that, the depreciation of the domestic currency against USD has advantage on coffee export growth when considering the demand side as it tends to stimulate coffee demand in the rest of the world, thus leading to an increase in export volume and revenue which helps to foster coffee export growth. However, in the supply side, this depreciation should be carefully monitored as excess depreciation may end up by rising inputs prices especially those inputs imported such as fertilizers, agrochemical, aggrotech and agro machineries that may intern affect the production level. The study ends by concluding, that it is imperative for the Central Bank to carefully observer exchange rate fluctuations and implement appropriate monetary policy strategies in favour of the agriculture sector in particular exportable crops such as coffee. This will help to manage the risks and opportunities that may arise in coffee export growth associated with currency movement.

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Section: Empirical Literature Reviewmentioning

confidence: 99%

Effects of Exchange Rate Variability on Coffee Export Growth in Tanzania

Mbunduki

2024

IJAE

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“…Ref. [ 6 ] investigate the effects of currency devaluation on Ethiopia's major export commodities, providing valuable insights into coffee and khat. Furthermore, studies analyzing the impact of exchange rate fluctuations during the pandemic on Ethiopia's trade performance, competitiveness, and overall economic growth are essential for understanding the broader economic landscape.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Ref. [ 6 ] investigate the effects of currency devaluation on Ethiopia's major export commodities, providing valuable insights into coffee and khat. Innovation, social media, and internet use have emerged as key factors in shaping economic growth.…”

Section: Introductionmentioning

confidence: 99%

Impacts of external factors on Ethiopia's economic growth: Insights on foreign direct investment, remittances, exchange rates, and imports

Hordofa

2023

Heliyon

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“…Indonesia termasuk 4 besar negara pengekspor kopi ke pasar dunia dalam bentuk green bean [2], [3]. Kopi memiliki nilai ekonomis yang cukup tinggi, berperan penting sebagai sumber devisa dan penghasilan bagi petani di negaranegara penghasil kopi seperti Indonesia [4], [5]. Luas areal perkebunan kopi Indonesia, 1.257.793 Ha, dengan produksi mencapai 786.192 ton [6].…”

Section: Pendahuluanunclassified

Analisis Pengaruh Variasi Waktu Terhadap Karakteristik Proses Pemanggangan Biji Kopi Liberika

Nur,

Suryadi,

Syahputra

2023

MJMST

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Kopi merupakan salah satu komoditas perdagangan paling diminati di dunia dan banyak dihasilkan di Indonesia, salah satunya adalah jenis kopi Liberika. Salah satu proses dalam pengolahan kopi adalah pemanggangan dan waktu merupakan parameter penting yang harus diperhatikan. Tujuan penelitian adalah untuk mengetahui pengaruh variasi waktu terhadap karakteristik proses pemanggangan biji kopi liberika. Pengujian dilakukan meggunakan pemanggang listrik yang berpengaduk. Bahan baku yang digunakan adalah liberika green bean sebanyak 200 g. Tiap sampel dipanggang pada temperatur 220 ◦C dengan variasi waktu 8 dan 10 menit, dengan 5 kali pengulangan untuk tiap variasi waktu. Dua buah termokopel dihubungkan dengan alat dan perangkat lunak Artisan visual roaster scope pada komputer untuk mengukur dan merekam perubahan data temperatur drum dan biji kopi terhadap waktu. Alat pengeras dan perekam suara dengan aplikasi sound effect spesifikasi note 10 diunakan untuk mendeteksi suara crack selama proses pemanggangan. Timbangan digital digunakan untuk mendeteksi perubahan masa terhadap waktu pemanggangan. Setelah proses selesai kopi segera didinginkan. Analisis dilakukan terhadap data rata-rata perubahan temperatur drum dan bean terhadap waktu, cracking time, data rata-rata perubahan massa terhadap waktu, nilai rendemen, volume dan massa jenis biji kopi hasil pemanggangan. Hasil pengujian menunjukkan korelasi positif yang sangat kuat antara waktu pemanggangan dengan temperatur dan korelasi negatif yang sangat kuat dengan perubahan massa. First crack terditeksi mulai terjadi setelah menit ke 6. Pemanggangan biji kopi liberika selama 8 dan 10 menit masing-masing menghasilkan rendemen 92,29 dan 89,46 %, volume jenis 1,75 dan 1,90 cm3/g. Namun waktu tidak berpengaruh signifikan terhadap rata-rata rendemen, volume jenis dan massa jenis kopi Liberika.

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The effects of currency devaluation on Ethiopia’s major export commodities: The case of coffee and khat: Evidence from the vector error correction model and the Johansen co-integration test

Cited by 9 publications

References 26 publications

Effects of Exchange Rate Variability on Coffee Export Growth in Tanzania

Effects of Exchange Rate Variability on Coffee Export Growth in Tanzania

Impacts of external factors on Ethiopia's economic growth: Insights on foreign direct investment, remittances, exchange rates, and imports

Analisis Pengaruh Variasi Waktu Terhadap Karakteristik Proses Pemanggangan Biji Kopi Liberika

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