Real exchange rate misalignment and economic performance in Namibia

Joel Hinaunye Eita; Andre C. Jordaan

doi:10.22495/cocv10i3c4art3

Real exchange rate misalignment and economic performance in Namibia

Joel Hinaunye Eita, Andre C. Jordaan

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

This paper estimates the real exchange rate misalignment and investigates its impact on economic performance and competitiveness of Namibia for the period 1970 to 2011 using cointegrated vector autoregression methods. The results show that there were periods of overvaluation and undervaluation of the real exchange rate. The analysis reveals that misalignment has a negative impact on the competitiveness and performance of the economy. Maintaining the real exchange rate out of equilibrium reduces economic performance and competitiveness. This suggests that policy makers should monitor the real exchange rate regularly and make the exchange rate policy part of trade promotion strategy.

Original language	English
Pages (from-to)	352-367
Number of pages	16
Journal	Corporate Ownership and Control
Volume	10
Issue number	3 E,CONT4
DOIs	https://doi.org/10.22495/cocv10i3c4art3
Publication status	Published - 2013
Externally published	Yes

Keywords

Autoregressions
Economic performance
Namibia
Trade promotion strategy

ASJC Scopus subject areas

General Business,Management and Accounting

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.22495/cocv10i3c4art3

Cite this

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AB - This paper estimates the real exchange rate misalignment and investigates its impact on economic performance and competitiveness of Namibia for the period 1970 to 2011 using cointegrated vector autoregression methods. The results show that there were periods of overvaluation and undervaluation of the real exchange rate. The analysis reveals that misalignment has a negative impact on the competitiveness and performance of the economy. Maintaining the real exchange rate out of equilibrium reduces economic performance and competitiveness. This suggests that policy makers should monitor the real exchange rate regularly and make the exchange rate policy part of trade promotion strategy.

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KW - Economic performance

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KW - Trade promotion strategy

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ER -

Real exchange rate misalignment and economic performance in Namibia

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

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