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Exchange rates and firm export performance in South Africa

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  • Lawrence Edwards
  • Ayanda Hlatshwayo

Abstract

This paper uses detailed firm transaction data on manufactured exports to analyse the dilution of the real exchange rate-export relationship in South Africa over the period 2010 to 2014. Our empirical results show that firms that are larger, have higher export shares in destination markets, and import are more likely to raise the domestic currency price of their exports in response to a depreciation, and consequently display weaker export quantity responses.

Suggested Citation

  • Lawrence Edwards & Ayanda Hlatshwayo, 2020. "Exchange rates and firm export performance in South Africa," WIDER Working Paper Series wp-2020-1, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-1
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2020-1.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ni, Yinan & Barth, James R. & Sun, Yanfei, 2022. "On the dynamic capital structure of nations: Theory and empirics," Research in International Business and Finance, Elsevier, vol. 62(C).

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    Keywords

    Exchange rate; Exports; South Africa;
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