| dc.contributor.author | Musila, Jacob | |
| dc.date.accessioned | 2009-07-06T21:19:00Z | |
| dc.date.available | 2009-07-06T21:19:00Z | |
| dc.date.issued | 2009-07-06T21:19:00Z | |
| dc.identifier.uri | http://hdl.handle.net/2149/2223 | |
| dc.description | I presented the paper on May 21, 2009 to a keen audience in the session on Economic Policy and Governance in Africa. The presentation was well received and, as one participant noted, the topic was very relevant to the current economic debate in Uganda – i.e., whether a fixed or flexible exchange rate will serve that country better. Perhaps the comment that mattered most in terms of future work was that I did not address the issue of non-normality in the regression residuals. It is claimed that failure to address the may lead to overstatement of the negative effect of exchange rate volatility on trade flows.
I am currently developing this presentation into a paper for publication in an academic journal and I am paying special attention to the above comment. In particular, in order to circumvent the problem of non-normality, I have explored several other estimation techniques besides the Ordinary Least Squares (OLS) technique. | en |
| dc.description.abstract | This article examines the relationship between exchange rate volatility and the flow of international trade in Sub-Saharan African countries. Using the gravity model and annual data for the period 1998-2007, we find that exchange rate volatility has adverse effect on the flow of exports and imports. However, the estimated results indicate a very low level of responsiveness of international trade to volatility in exchange rate. Thus, eliminating the volatility in the exchange rates will result in only very small increases in the flow of exports or imports. This shows that exchange rate stability is not a sufficient condition for promoting international trade in Sub-Saharan Africa. | en |
| dc.language.iso | en | en |
| dc.relation.ispartofseries | 92.927.G1143; | |
| dc.subject | exchange rate volatility | en |
| dc.subject | international trade | en |
| dc.subject | Sub-Saharan Africa | en |
| dc.subject | exports and imports | en |
| dc.title | Exchange Rate Volatility and Trade Flows in Sub-Saharan Africa | en |
| dc.type | Presentation | en |
