The Impact of Real Exchange Rate Changes on South African Agricultural Exports: An Error Correction Model Approach

Poonyth, Daneswar; Zÿl, Johan van

doi:10.1080/03031853.2000.9523683

Cited by 8 publications

(6 citation statements)

References 18 publications

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“…There is mixed international evidence regarding the importance of exchange rate in explaining exports. For instance, significant relations between the NOMER and export were found in China (Zhang & Liu, 2012), South Africa (Poonyth & Zyl, 2000) and Malaysia (Wong & Tang, 2011), while exchange rate was found to have no relationship with export in Singapore (Fang & Miller, 2007), Jordon (Sweidan, 2013) and Ireland (Fountas & Bredin, 1998). As we have noted previously, the evidence for India is also mixed.…”

Section: Resultsmentioning

confidence: 99%

On the Relationship between the Nominal Exchange Rate and Export Demand in India

Bhattacharyya

Rit²

2018

South Asian Journal of Macroeconomics and Public Finance

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This article attempts to determine the effect of nominal exchange rates on Indian exports between 1996 and 2014. We begin by assuming that the nominal exchange rate can affect export directly as well as indirectly via its pass through on domestic prices. The analysis is conducted with quarterly data after controlling for the effect of exchange rate volatility on exports. The main results that we get are the following: There is no direct evidence that the nominal exchange rate or its volatility influences exports. However, there is a significant relationship between the relative price ratio (domestic to foreign) and export. Further, we find strong evidence of pass through of the nominal exchange rate on prices (about 54%) in the long run. We interpret this result as an evidence of the nominal exchange rate affecting exports indirectly through domestic prices. The results suggest that the debate on the influence of exchange rates on Indian export is still an open one. JEL Classification: F14, E31, G15

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Section: Resultsmentioning

confidence: 99%

On the Relationship between the Nominal Exchange Rate and Export Demand in India

Bhattacharyya

Rit²

2018

South Asian Journal of Macroeconomics and Public Finance

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“…The other approach being to use the so-called gravity equation models, which explain bilateral trade flows between countries as depending positively on the product of their GDPs and negatively on their geographical distance from each other .This section reviews some of the empirical literature and their findings. This review will be in short and for further study ,readers are referred to, for example, Omojimite and Akpokodje (2010),Todani and Munyama (2005), Cote (1994), McKenzie (1999, Poonyth and Zyl (2000), and Clark et al (2004) that is, for more detailed and comprehensive surveys.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Exchange Rate Volatility on South African Exports

Nyahokwe

Ncwadi

2013

MJSS

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Exchange rates have been highly volatile in South Africa especially after the end of the Bretton Woods system and this has raised a lot of debate amongst interested parties in South Africa such as the South African government and the Congress of South African Trade Union. Therefore, this paper investigates the impact of exchange rate volatility on aggregate South African exports flows to the rest of the world for the period 2000 to 2009. The results obtained suggest that, there exist no statistically significant relationship that is there is an ambiguous relationship between South African exports flows and exchange rate volatility. Although the results were not robust, at the same the study found some sensitivity of South African exports to movements of the exchange rate. We find that, depending on the measure of volatility used, exchange rate volatility either does not have a significant impact on South Africa's exports flows, or it has a positive impact on aggregate goods and services.

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“…The impact of real exchange rate changes on the South African agricultural exports between 1991 and 1999 was investigated by Poonyth and Zyl (2000) using error correction model. The findings established a short-run unidirectional casual flow from the exchange rate to agricultural exports.…”

Section: Empirical Reviewmentioning

confidence: 99%

Macroeconomic Variables, the Oil, and the Agricultural Sectors in Nigeria

Onakoya¹,

Alayande²

2019

ASS

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The present study examined the impact of the macroeconomic variables and the oil sector on the performance of the agricultural sector between 1981and 2017 in Nigeria. The study adopted a three-stage estimation approach. The initial step in this estimation was the conduct of descriptive statistics and stationarity tests of the variables. Some of the series were stationary at level and some others at the first difference which informed the deployment of the Auto regressive distributed lag (ARDL) technique for model estimation. The third stage was the post-estimation of the model in order ascertain its robustness for predictability and policy formulation. These were the Cumulative Sum Control Chart (CUSUM) stability, Vector Error Correction (VEC) Residual Heteroscedasticity, Breusch-Godfrey Serial Correlation LM, Vector Error Correction Residual Normality, and Vector Error Correction (VEC) Residual Heteroscedasticity tests. The results indicated that contrary to the Dutch disease postulation the oil sector positively impacted the output of the agricultural sector. The influence of exchange rate was also positive. Interest and unemployment rates on the other hand, had negative effects. The rate of inflation and the national output had no impact. The study recommended that the Nigerian government should channel resources towards the agricultural sector to ensure increase in foreign earnings and sufficient domestic production.

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The Impact of Real Exchange Rate Changes on South African Agricultural Exports: An Error Correction Model Approach

Cited by 8 publications

References 18 publications

On the Relationship between the Nominal Exchange Rate and Export Demand in India

On the Relationship between the Nominal Exchange Rate and Export Demand in India

The Impact of Exchange Rate Volatility on South African Exports

Macroeconomic Variables, the Oil, and the Agricultural Sectors in Nigeria

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