How do variations in dollar exchange rate impact food commodity prices in Africa?

نویسندگان

چکیده

Aim: Commodity exporting nations have significant terms of trade swings, making their actual exchange rate unstable. This study looked at how variations in dollar affected food commodity prices Africa between 1990 and 2021.
 Design/Research methods: The conducted GARCH analysis for ascertaining prevalence volatilities rates interest respectively selected African countries. Also, we estimated both static dynamic driven by panel least squares generalized method moments (GMM) estimators on data from some commodity-exporting African, namely, Ghana, Gabon, Tunisia, Nigeria, South Africa.
 Findings: GMM results reveal taken together had positive effects prices. estimates demonstrate volatility growth using normal t multivariate distributions. However, based empirical findings, t-distribution largest maximized log-likelihood -8920.1 also a satisfactory df 26.82 (<30). that the Nigerian Naira highest coefficient approximately 71.2%. was followed Ghanaian Cedi with negative 71% rand 65%. while all countries respect to rate, except Ghana currency. Nigeria showed volatility. A possible explanation this high aforementioned is persistent domestic inflation.
 Originality: originality rooted establishment having relation pervasive shocks. an indication adverse downward adjustment local currencies vis-à-vis US covered study.
 Contributions: contribution lies its increase due variability calculated depreciation rate. Empirically, it confirmation structural problem, variation as cause inflation countries.
 Limitations: Results be interpreted care small sample size. are rather working hypothesis future research.
 JEL: A20, F46, G20

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ژورنال

عنوان ژورنال: The Central European Review of Economics and Management

سال: 2022

ISSN: ['2544-0365']

DOI: https://doi.org/10.29015/cerem.955