Capital flows and real exchange rate movement in South Africa
- Authors: Lindani, Sandiswa
- Date: 2021-09
- Subjects: Foreign exchange rates , Exchange rate pass-through , Capital movements
- Language: English
- Type: Master's/ theses , text
- Identifier: http://hdl.handle.net/10353/20417 , vital:45664
- Description: The neoclassical theory suggests that free flow of external capital should be equilibrating and thereby facilitating smoothening of an economy's consumption or production patterns. Based on this background, this study empirically examines the extent to which the different forms of capital flows amongst other variables influence the real exchange rate in South Africa for the period 1980 to 2019, using annual data. Estimation techniques employed include the Johansen Co-integration Approach and the Vector error correction model (VECM). The variables were found to be co-integrated, with six co-integrating vectors existing. The long-run results revealed that FPI has an appreciating effect on the exchange rate in South Africa. Based on the results, policy recommendations are suggested. , Thesis (MCom) (Economics) -- University of Fort Hare, 2021.
- Full Text:
- Date Issued: 2021-09
- Authors: Lindani, Sandiswa
- Date: 2021-09
- Subjects: Foreign exchange rates , Exchange rate pass-through , Capital movements
- Language: English
- Type: Master's/ theses , text
- Identifier: http://hdl.handle.net/10353/20417 , vital:45664
- Description: The neoclassical theory suggests that free flow of external capital should be equilibrating and thereby facilitating smoothening of an economy's consumption or production patterns. Based on this background, this study empirically examines the extent to which the different forms of capital flows amongst other variables influence the real exchange rate in South Africa for the period 1980 to 2019, using annual data. Estimation techniques employed include the Johansen Co-integration Approach and the Vector error correction model (VECM). The variables were found to be co-integrated, with six co-integrating vectors existing. The long-run results revealed that FPI has an appreciating effect on the exchange rate in South Africa. Based on the results, policy recommendations are suggested. , Thesis (MCom) (Economics) -- University of Fort Hare, 2021.
- Full Text:
- Date Issued: 2021-09
The effects of exchange rate volatility on manufacturing exports in South Africa
- Authors: Munyu, Yibanati
- Date: 2020-01
- Subjects: Foreign exchange rates
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/20208 , vital:45411
- Description: The study examined the effect of exchange rate volatility on manufacturing exports in South Africa utilizing quarterly time series data from 1990 to 2018. Manufacturing exports (MX), foreign income (GDPf), input costs (C01), the real effective exchange rate (REER) and exchange rate volatility (V) were the key parameters. The study employed two alternative measures of exchange rate volatility. The first measure is the moving average standard deviation of the logarithm of the real effective exchange rate (MASDlnREER) based on the raw monthly data of the real effective exchange rate. The second measure is a dummy variable intended to capture the unexpected variation of the exchange rate. The study utilized the Autoregressive Distributed Lag (ARDL) and the Error Correction Method (ECM) to examine the both the long run and short-run relationships. The empirical results revealed that in the long run, the real effective exchange rate volatility measure (MASDlnREER) has a negative and significant effect on manufacturing exports in South Africa. This result suggests that policy makers need to make an effort to moderate, the volatility of the Rand in an attempt to contain the adverse effects on manufacturing exports. , Thesis (MCom) -- Faculty of Management and Commerce, 2020
- Full Text:
- Date Issued: 2020-01
- Authors: Munyu, Yibanati
- Date: 2020-01
- Subjects: Foreign exchange rates
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/20208 , vital:45411
- Description: The study examined the effect of exchange rate volatility on manufacturing exports in South Africa utilizing quarterly time series data from 1990 to 2018. Manufacturing exports (MX), foreign income (GDPf), input costs (C01), the real effective exchange rate (REER) and exchange rate volatility (V) were the key parameters. The study employed two alternative measures of exchange rate volatility. The first measure is the moving average standard deviation of the logarithm of the real effective exchange rate (MASDlnREER) based on the raw monthly data of the real effective exchange rate. The second measure is a dummy variable intended to capture the unexpected variation of the exchange rate. The study utilized the Autoregressive Distributed Lag (ARDL) and the Error Correction Method (ECM) to examine the both the long run and short-run relationships. The empirical results revealed that in the long run, the real effective exchange rate volatility measure (MASDlnREER) has a negative and significant effect on manufacturing exports in South Africa. This result suggests that policy makers need to make an effort to moderate, the volatility of the Rand in an attempt to contain the adverse effects on manufacturing exports. , Thesis (MCom) -- Faculty of Management and Commerce, 2020
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- Date Issued: 2020-01
The impact of the exchange rate on the manufacturing sector in South Africa (1983-2012)
- Authors: Ogunjobi, Olamide Doris
- Date: 2015-07
- Subjects: Foreign exchange rates , Manufacturing industries
- Language: English
- Type: text
- Identifier: http://hdl.handle.net/10353/25666 , vital:64355
- Description: The study, in its quest to explore the impact of Real Exchange Rate on the manufacturing sector in South Africa over the quarterly period 1983-2012 (30years), a VAR technique and VECM by Johansen (1991, 1995) estimation techniques were used. The study adopted Hodge (2012) model using five variables with GDP manufacturing as the dependent variable and the independent variables include; real exchange rate, gross fixed capital formation, interest rate and trade openness. The empirical analysis shows that real exchange rate has a significant impact on the South Africa manufacturing Sector. The impulse response and variance decomposition analysis in this study also revealed that interest rate has a significant impact on the South African manufacturing Sector. Furthermore gross fixed capital formation has a positive impact on the manufacturing sector. The same cannot be said about the trade openness in the short run. , Thesis (MCom) -- Faculty of Management and Commerce, 2015
- Full Text:
- Date Issued: 2015-07
- Authors: Ogunjobi, Olamide Doris
- Date: 2015-07
- Subjects: Foreign exchange rates , Manufacturing industries
- Language: English
- Type: text
- Identifier: http://hdl.handle.net/10353/25666 , vital:64355
- Description: The study, in its quest to explore the impact of Real Exchange Rate on the manufacturing sector in South Africa over the quarterly period 1983-2012 (30years), a VAR technique and VECM by Johansen (1991, 1995) estimation techniques were used. The study adopted Hodge (2012) model using five variables with GDP manufacturing as the dependent variable and the independent variables include; real exchange rate, gross fixed capital formation, interest rate and trade openness. The empirical analysis shows that real exchange rate has a significant impact on the South Africa manufacturing Sector. The impulse response and variance decomposition analysis in this study also revealed that interest rate has a significant impact on the South African manufacturing Sector. Furthermore gross fixed capital formation has a positive impact on the manufacturing sector. The same cannot be said about the trade openness in the short run. , Thesis (MCom) -- Faculty of Management and Commerce, 2015
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- Date Issued: 2015-07
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