Why choose IJSRM?

High Quality Editorial Board, Globally Index Journal, Open Access & high citation rate, will apply for ISI track & other data base in near future for indexing ...

Title: Real Exchange Rate, Exchange Rate Volatility and Trade Balance in Sub-Saharan African Countries: A Generalized Method of Moment (GMM) Approach

Author(s): Olomola, Philip Akani and Dada, James Temitope*

Affiliation: Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria

 DOI : http://dx.doi.org/10.18535/ijsrm/v5i11.08


Abstract

This study examines the effect of real exchange rate and exchange rate volatility on trade balance in Sub-Saharan African countries from 2006 to 2016. Fourteen countries in the region are selected for the study. Generalized Method of Moment (GMM) is used as the estimation technique, and exchange rate volatility is generated from real exchange rate using Generalized Autoregressive Conditional Heteroskedasticity (GARCH). The result shows that real exchange rate and exchange rate volatility have positive and significant effect on trade balance in sub-Saharan African countries. Furthermore, gross domestic product (domestic income) has positive and significant effect on trade balance while world gross domestic product (foreign income) has negative effect on trade balance. The study concludes that the region should take advantage of exchange rate volatility in improving their trade balance.

Impact Factor/indexing

Impact Factor : 3.994






Who's Online

We have 24 guests and no members online

Social Science and Humanities

Antropology & Art

Communication studies

Corporate governance

Crosscultural Studies

Population Studies

Read More

Managment and Economics

Global Business

Economic Growth

Finance and Investment

Marketing

Strategic Management

Read More

Science and Medical Science

Life Science

Biotechnology

Public health

Clinical Research

Biology

Read More

Go to top