Examining the nexus between exchange rate volatility and export performance: Empirical evidence from the Egyptian experience
Journal Title: Business and Economic Horizons - Year 2018, Vol 14, Issue 3
Abstract
This paper investigates the relationship between exchange rate volatility and export performance of the Egyptian economy for the period (1980-2016). Moving average standard deviation and conditional standard deviation from GARCH model are used to generate two different measures of exchange rate volatility. The co-integration results indicate the existence of a unique long-run relationship between the real value of non-petroleum exports (as well as the volume of total exports) and the GARCH measure of exchange rate volatility. Using a Vector Error Correction Model, it is found that the volatility of the real effective exchange rate has a significant negative effect on real exports, whereas the effect of the level of real effective exchange rate itself, is not found to be statistically significant. Relevant policy implications are derived from these results.
Authors and Affiliations
Heidi Aly, Rana Hosni
Keywords
Related Articles
- EP ID EP441637
- DOI 10.15208/beh.2018.39
- Views 96
- Downloads 0
How bad are the growth hampering effects of non-communicable diseases? The case of developing countries
This paper attempts to estimate the impact of Non-Communicable Diseases on economic growth in developing countries. In fact, the literature has confirmed the existence of causal liaisons between the epidemiological burde...
Application of discrete dynamic model for the assessment of stability of the world economy development
A discrete dynamic model (DDM) is used to describe the pace of the world GDP annual change rate. The Mandelbrot set of DDM was constructed for different time intervals to assess the ability of the world economic system t...
Analyzing entrepreneurial orientation impact on start-up success with support service as moderator: A PLS-SEM approach
This paper examines the Start-up Success of Spin-off and Symbiosis Company (SSC) using Entrepreneurial Orientation (EO) and Support Service. Notwithstanding the extensive study on start-up firms and Support Service, ther...
Faculty’s turnover in private higher learning institutions: A phenomenal inquiry
The quality of the faculty is one of the most important components of higher education’s quality assurance. Turnover among faculty, however, could undermine the efficiency, productivity and in some occasions, threats the...
Can disclosure practices and stakeholder management influence zakat payers’ trust? A Malaysian evidence
This study examines whether disclosure practices and stakeholder management play an important role in influencing the zakat payers' trust in the zakat institutions in Malaysia. A regression analysis was performed to exam...