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Effects of Exchange Rate Volatility on Non-Traditional Exports in Ghana

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  • Obeng, Camara Kwasi

Abstract

Purpose – The government of Ghana has implemented a number of policies to strengthen the production and export of non-traditional products as a way of diversifying exports in Ghana with very little success. Foremost among these policies is the liberalisation of exchange rate. Meanwhile, the exchange rate has been very volatile. The study therefore examines the effects of exchange rate volatility on non-traditional exports in Ghana. Design/Methodology/ approach - This study employed Autoregressive Distributed Lag (ARDL) cointegration estimation technique for the investigation. Findings - The results indicate that exchange rate volatility negatively impacts Ghana’s non-traditional exports. Also, the effect is greater in the long run than it is in the short run. Other results also show that world income, growth rate of the economy and Treasury bill rate promote non-traditional exports but real effective exchange rate does not. Originality/ value – The value of the paper lies in the discussion of the short run and long run effects of exchange rate volatility on non-traditional exports in the Ghanaian context.

Suggested Citation

  • Obeng, Camara Kwasi, 2017. "Effects of Exchange Rate Volatility on Non-Traditional Exports in Ghana," MPRA Paper 79026, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:79026
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    References listed on IDEAS

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    Cited by:

    1. Tule Kpughur Moses & Oboh Ugbem Victor & Ebuh Godday Uwawunkonye & Onipede Samuel Fumilade & Gbadebo Nathaniel, 2020. "Does Exchange Rate Volatility Affect Economic Growth in Nigeria?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(7), pages 1-54, July.
    2. Johane Motsatsi, 2020. "How Non-Diamond Exports Respond to Exchange Rate Volatility in Botswana," Working Papers 77, Botswana Institute for Development Policy Analysis.

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    More about this item

    Keywords

    Exchange rate volatility; Non-Traditional Export; Autoregressive Distributed Lag; Ghana.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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