HAS EXCHANGE RATE VARIABILITY AFFECTED TROPICAL NON-TRADITIONAL

David Kihangire, David Potts and Prof. Sam Cameron
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David Potts: University of Bradford
Prof. Sam Cameron: University of Bradford

International Trade from University Library of Munich, Germany

Abstract: This study examines the effects of exchange rate variability on Uganda’s flowers exports during 1994-2001 by testing the central hypothesis that following the floating exchange rate regime, ‘Uganda’s exports of tropical flowers are negatively and significantly correlated with exchange rate variability.’ The absence of pure I(0) or I(1) in the data, and lack of endogeneity and simultaneous bias problems invites us to apply ARDL approach to cointegration and OLS. The results suggest that although Uganda’s flower exports are negatively correlated with exchange rate variability, the measured effects are insignificant.

Keywords: Exchange rate variability; flowers exports; Uganda; dependent- economy (search for similar items in EconPapers)
JEL-codes: F1 F2 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2005-05-14
New Economics Papers: this item is included in nep-ifn
Note: Type of Document - doc; pages: 22. This is a working paper. Any comments are welcome
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