The Impact of Real Exchange Rate Volatility on South African Exports to the United States (U.S.): A Bounds Test Approach

Content Provider	Semantic Scholar
Author	Sekantsi, Lira Peter
Copyright Year	2011
Abstract	This research paper empirically examines the impact of real exchange rate volatility on trade in the context of South Africa’s exports to the U.S. for the South Africa’s floating period January 1995-February 2007. In measuring real exchange rate volatility, this study utilised GARCH. After establishing the existence of cointegration among the variables involved in our two-country export model, we estimated long-run coefficients by means of ARDL bounds testing procedure proposed by Pesaran, et al.(2001). Our results indicate that real exchange rate volatility exerts a significant and negative impact on South Africa’s exports to the U.S. Therefore, stable and competitive exchange rate and sound macroeconomic fundamentals are required in order to improve international competitiveness and greater penetration of South African exports to international markets.accounting and taxation, we applied the method proposed in 1998 by Lamb et al. and developed by Nobes et Schwenke (2006). Six cases are available: from disconnection (case I) to identity (case II), through the various cases of influence on accounting aver taxation or vice-versa. Despite the short period considered (20 years), our results confirm a de jure disconnection between Romanian financial accounting and tax accounting, as suggested by Petre and Lazar (2006). But, one should not to much rely on appearances: in many cases, the accounting practice in Romania (especially SMEs) in marked by a close relationship with taxation.
Starting Page	119
Ending Page	139
Page Count	21
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://www.freit.org/WorkingPapers/Papers/TradePatterns/FREIT191.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article