Exchange rate changes on export volumes in South Africa under the inflation targeting period.

ABSTRACT: This paper examines the long run effects of the exchange rate changes on export volumes in South Africa under the inflation targeting period using the Johansen cointegration and the Engle-Granger approaches. This paper further examines whether the 2007 global financial crisis, rising government debt, and cost of credit post 2008Q4 impacted the magnitudes of determinants of export volumes. Both tests confirm a long run relationship amongst export volumes, exchange rate, and foreign income. The long run exchange rate impacts are bigger than the short run effects. Foreign income demand has bigger impact on export volumes than the exchange rate. Evidence shows that 2007 global financial crisis reduced the impact of the exchange rate depreciation on export volumes but increased the impact of th

SUBMITTER: Ndou E 

PROVIDER: S-EPMC9135983 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature