IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/54227.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/54227/files/22%20_23_%20Poonyth%20_%20Van%20Zyl%20-Dec%202000.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.54227?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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.
    4. Mike Belongia & Richard A. King, 1983. "A Monetary Analysis of Food Price Determination," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 131-135.
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. Mashilana Ngondo & Hlalefang Khobai, 2018. "The impact of exchange rate on exports in South Africa," Working Papers 1809, Department of Economics, Nelson Mandela University, revised Mar 2018.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Debasish Maitra & Varun Dawar, 2019. "Return and Volatility Spillover among Commodity Futures, Stock Market and Exchange Rate: Evidence from India," Global Business Review, International Management Institute, vol. 20(1), pages 214-237, February.
    2. Liu, Zong-Shin, 1989. "Monetary policy, exchange rate, and effects on US wheat trade and domestic market in an imperfect competition framework," ISU General Staff Papers 1989010108000010216, Iowa State University, Department of Economics.
    3. Awokuse, Titus O., 2005. "Impact of Macroeconomic Policies on Agricultural Prices," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-12, October.
    4. Hushak, Leroy J., 1985. "The Exchange Rate And Agriculture: Real Issue Or Dead Horse!," 1985 Annual Meeting, August 4-7, Ames, Iowa 278660, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Dushmanitch, V. Y. & Darroch, M. A. G., 1990. "An Economic Analysis Of The Impacts Of Monetary Policy On South African Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 29(4), December.
    6. Gong, Li & Kinnucan, Henry, 2015. "Effects of Recession and Dollar Weakening on the U.S. Agricultural Trade Balance," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196612, Southern Agricultural Economics Association.
    7. Jungho Baek & Won W. Koo, 2008. "Identifying Macroeconomic Linkages to U.S. Agricultural Trade Balance," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(1), pages 63-77, March.
    8. Kargbo, J.M., 2005. "Impacts of monetary and macroeconomic factors on food prices in West Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(2), pages 1-20, June.
    9. Yap, Wei Yim & Lam, Jasmine S.L., 2006. "Competition dynamics between container ports in East Asia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 35-51, January.
    10. Derek Bond & Michael J. Harrison & Edward J. O'Brien, 2005. "Testing for Long Memory and Nonlinear Time Series: A Demand for Money Study," Trinity Economics Papers tep20021, Trinity College Dublin, Department of Economics.
    11. Malkamäki, Markku, 1992. "Cointegration and causality of stock markets in two small open economies and their major trading partner nations," Bank of Finland Research Discussion Papers 16/1992, Bank of Finland.
    12. Pami Dua & Nishita Raje & Satyananda Sahoo, 2004. "Interest Rate Modeling and Forecasting in India," Occasional papers 3, Centre for Development Economics, Delhi School of Economics.
    13. Yau, Hwey-Yun & Nieh, Chien-Chung, 2006. "Interrelationships among stock prices of Taiwan and Japan and NTD/Yen exchange rate," Journal of Asian Economics, Elsevier, vol. 17(3), pages 535-552, June.
    14. Burakov, D., 2016. "Oil Prices, Exchange Rate and Prices for Agricultural Commodities: Empirical Evidence from Russia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(2), pages 1-15, June.
    15. Ronald A. Babula & Fred J. Ruppel & David A. Bessler, 1995. "U.S. corn exports: the role of the exchange rate," Agricultural Economics, International Association of Agricultural Economists, vol. 13(2), pages 75-88, November.
    16. Dushmanitch, V. Y. & Darroch, M. A. G., 1991. "The Impacts Of Monetary Policy On The Maize And Beef Sectors Of South Africa I: Theoretical Foundations And Model Specification," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 30(3), September.
    17. Miguel Ramirez & Zsófia Kőműves, 2014. "Economic Infrastructure, Private Capital Formation, and FDI Inflows to Hungary: A Unit Root and Cointegration Analysis with Structural Breaks," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(4), pages 367-382, December.
    18. Hector O. Zapata & T. Randall Fortenbery, 1996. "Stochastic Interest Rates and Price Discovery in Selected Commodity Markets," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(4), pages 643-654.
    19. Christopher Adam, 2000. "The Transactions Demand for Money in Chile," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 3(3), pages 33-53, December.
    20. Catherine Laroche-Dupraz & Marilyne Huchet-Bourdon & Anned-Linz Senadin, 2012. "Impact du taux de change sur la sécurité alimentaire des pays en développement," Post-Print hal-02746844, HAL.

    More about this item

    Keywords

    International Relations/Trade;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:54227. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.