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The impact of real exchange rate changes on South African agricultural exports: An error correction model approach

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  • Poonyth, Daneswar
  • van Zyl, Johan

Abstract

This study evaluates the long run and short run effects of real exchange rate changes on South African agricultural exports using an Error Correction Model (ECM). The results suggest that there is a unidirectional causal flow from exchange rate to agricultural exports. Moreover, appreciation of the Rand will be detrimental to agricultural exports.

Suggested Citation

  • Poonyth, Daneswar & van Zyl, Johan, 2000. "The impact of real exchange rate changes on South African agricultural exports: An error correction model approach," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), pages 1-13, December.
    • Handle: RePEc:ags:agreko:54227
    DOI: 10.22004/ag.econ.54227
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    References listed on IDEAS

    as
    1. Chambers, Robert G. & Just, Richard E., 1982. "An investigation of the effect of monetary factors on agriculture," Journal of Monetary Economics, Elsevier, vol. 9(2), pages 235-247.
    2. repec:bla:jfinan:v:44:y:1989:i:1:p:167-81 is not listed on IDEAS
    3. Pick, Daniel H & Vollrath, Thomas L, 1994. "Real Exchange Rate Misalignment and Agricultural Export Performance in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 42(3), pages 555-571, April.
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    5. Dolado, Juan J & Jenkinson, Tim & Sosvilla-Rivero, Simon, 1990. "Cointegration and Unit Roots," Journal of Economic Surveys, Wiley Blackwell, vol. 4(3), pages 249-273.
    6. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    7. G. Edward Schuh, 1974. "The Exchange Rate and U. S. Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 1-13.
    8. S. E. Grigsby & C. A. Arnade, 1986. "The Effect of Exchange Rate Distortions on Grain Export Markets, The Case of Argentina," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 434-440.
    9. Dallas S. Batten & Michael T. Belongia, 1986. "Monetary Policy, Real Exchange Rates, and U.S. Agricultural Exports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 422-427.
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    Cited by:

    1. Ngondo, Mashilana & Khobai, Hlalefang, 2018. "The impact of exchange rate on exports in South Africa," MPRA Paper 85079, University Library of Munich, Germany.
    2. Ranajoy Bhattacharyya & Bipradas Rit, 2018. "On the Relationship between the Nominal Exchange Rate and Export Demand in India," South Asian Journal of Macroeconomics and Public Finance, , vol. 7(2), pages 260-282, December.
    3. Fatiha El agri & Mounir Jerry & Ahlam Qafas & Youness Manzah, 2024. "Determinants of the Export Function in Morocco: Evidence from ARDL and Dynamic ARDL Models," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 16(1), pages 98-129, January.

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