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The fluctuations of the exchange rate of the domestic currency have been a major concern. Since the 1970’s there has been a debate on the relationship between exchange rate volatility and export flows. In the wake of the recent global financial crisis and rising food prices, this debate has become even more strident and the concerns even more palpa...
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... Studies (chalwa et al., 2016;Dlamini et al., 2014;lei, 2023;Mango et al., 2015;Marina et al., 2023;Sinngu & antwi, 2014;such as Buzgau & cosma, 2021) are a few examples of those that used a descriptive design. Other studies that used both descriptive and explanatory designs include aydoğan (2023), Bahta (2021), Huo et al. (2020), and Seyoum (2021); and studies like wanyonyi et al. (2023) and Obi et al. (2013) that make use of an explanatory design. consequently, the results showed that there is a serious lack of studies with explanatory design. ...
... agribusiness studies have primarily employed Porter Diamond, constant Market Share (cMS), Relative trade advantage (Rta), and Revealed comparative advantage (Rca) models to investigate competitiveness. in agribusiness studies(e.g., istudor et al., 2022;Keror et al., 2018;Matkovski et al., 2019), the Rca model is the most frequently used competitiveness measure. it is followed by Porter Diamond (e.g.,Marina et al., 2023;Putri et al., 2017), Rta (e.g., worku et al., 2023), and cMS (e.g.,Obi et al., 2013). Several models, including the trade Specialisation index (tSi), export competitive index (Xci), lafay index(lFi), Hirschman index (Hi), Heckscher-Ohlin-vanek (H-O-v) model, Policy analysis Matrix (PaM), Domestic Resource cost Ratio (DRcR), nominal Protection coefficient (nPc), analytic Hierarchy Process (aHP), Dynamic Research evaluation for Management (DReaM), extraction rate (etR), gravity Model, etc. were used in some agribusiness studies (e.g., ...
This review study intended to investigate how existing agribusiness competitiveness studies understood the competitiveness concept and the measurement employed. To address the aims, the study used a systematic review strategy, particularly using the PRISMA 2020 protocol. In this respect, clear inclusion and exclusion criteria were used to select 60 relevant articles from the total of 2,563 agribusiness competitiveness-focused articles obtained from various databases. The study also used content analysis to analyze the data that were gathered and descriptive research design to present the results descriptively. The finding shows that competitiveness concept is understood from marketing perspective or forward integration, particularly from export. Methodologically, the finding revealed that there is a shortage of studies conducted using explanatory design and inferential statistical analysis. RCA, Porter Diamond, and RTA models are the most accepted and applied models to investigate competitiveness in the existing studies but the first two in particular are not complete. Therefore, it is suggested that future studies focus on investigating agribusiness competitiveness using explanatory design and inferential statistical analysis. It is also recommended that NRCA, RTA, and the proposed competitiveness framework has to be used together to investigate agribusiness competitiveness comprehensively.
... The study concluded that export growth of Indonesia tea was lower than that of the world tea growth due to product composition effect and distribution aspect problem, which makes low competitiveness of Indonesia tea compared to other tea producing countries. Obi and Ndou (2013), analysed the competitiveness of South Africa citrus industry using the CMS model. The study evaluates the export market share of the South Africa citrus industry using time series data from different organisation. ...
With African economies slowly departing from the emphasis on the theory of comparative advantage, which seemed to imply a policy of continuing export of primary goods, the interest in exporting processed or value-added products has become quite widespread, leading to questions about the empirical effects of such measures on local industries. The aim of this paper is to analyse the effect of an export tax on the export competitiveness of Ethiopia's leather industry. The Government of Ethiopia implemented an export tax of 150 per cent on raw hides, skins and semi-finished leather products in 2008. A similar tax rate was placed on crust leather in 2012. According to the Government of Ethiopia these fiscal arrangements would substantially encourage leather goods manufacturing. A Constant Market Share (CMS) model was used to evaluate Ethiopia's performance in leather products trade in response to these measures. Export value data in 2007 are used as the base year, whereas data in 2013 are used to measure the impact of the export tax. The results indicate that the export tax affected the export of raw hides and skins and unfinished leather products negatively. However, the ramifications of this state policy on exports of finished leather products have been positive. These government policies, thus, worked to increase production and export of value-added leather products at the expense of local tanneries. The government could, usefully, consider implementing additional policy measures to upgrade the competitiveness of local tanneries.
... The relationship between exchange rate fluctuations and international trade has been a subject of debate for many years (Obi et al., 2013). It has generally been argued that a rise in exchange rate risk causes economic agents to invest in less risky assets and raises the level of risk to trade, which in turn reduces the level of trading activity (Ndung'u, 1999; Walters and de Beer, 1999;Bah and Amusa, 2003). ...
... Table 3 shows that exchange rate volatility is statistically significant and positively related to manufacturing exports. This finding is consistent with De Grauwe (1988), Arize et al. (2003), Todani and Munyama (2005), and Obi et al. (2013). The positive relationship between exchange rate volatility and manufacturing exports might be due to income effects exceeding substitution effects. ...
The primary objective of this study is to investigate the impact of exchange rate volatility on South Africa's manufacturing exports to the United States for the period 1990Q1 to 2014Q1. The study employs the EGARCH model to measure exchange rate volatility, and the ARDL bounds tests as developed by Pesaran, Shin and Smith to determine the longrun and short-run effects of exchange rate volatility on the country's manufacturing exports. The study also carries out a Granger causality test between real exchange rates and exports of manufactured products. The study results show that an increase in exchange rate volatility has a significant positive effect on manufacturing exports in the long run. However, the results are insignificant in the short run. It is also found that real exchange rates Granger cause manufacturing exports. Manufacturing exports, however, do not Granger cause real exchange rates.
Flower firms play significant role in Kenya economic growth; however, they face uncertain future on their operations due to overreliance on export earning which is affect by exchange rate fluctuation. The study sought to establish the effect of foreign public debt on export earnings of flowers firms in Kenya. The study was guided by classical theory of public debt. The study used descriptive research design to evaluate connection between determinant exchange rate fluctuation and export earning of flower firm in Kenya. The study used both secondary and primary data. The study target population was 100 (accounts and finance managers) working with 30 registered flower firms in Kenya. The study employed structured questionnaires. The research instrument was pilot tested in two flower firms namely Sosian flower firm and Kitale Riverside Flowers before its administration for data collection in the main study. The data collected was subjected to relevant processing and analysis whereby the Statistical Package for Social Sciences (SPSS) software was analysis data. Descriptive statistics tools including mean, mode, standard deviation and variances were used. Inferential statistics in form of correlation and multiple regression analyses was also used to analyze data. The research hypotheses were tested at 0.05 level of significance. The study finding indicate that public debt has strong positively and statistically significant of (β 4 = 0.201, p<0.05) on export earnings of flower firms in Kenya. The study recommends that there is need for policy makers and Government to maintain optimal level of public debt in the country bearing in mind that they influence export earnings. This study will be useful to practitioners and policy makers through providing evidence which help in understanding factors affecting export earning of flower firms which will be important for management purpose and development of new policies.
The volatile nature of exchange rates with the advent of floating regimes has received much attention in economic research. The volatility is generally perceived as negatively affecting international trade. While theoretical predictions and empirical outcomes appear mixed, the balance seems to tilt in favour of this perception. Applying the pooled mean-group estimator of dynamic heterogeneous panels technique to data for eleven Sub-Saharan African economies over the period 1993 to 2014, this paper uncovers no significant effects of exchange rate volatility on imports. In the case of exports, however, the study finds a negative effect of volatility in the short-run, consistent with the above view, but a positive impact in the long-run.
The volatile nature of exchange rates with the advent of floating regimes has received much attention in economic research. The volatility is generally perceived as negatively affecting international trade. While theoretical predictions and empirical outcomes appear mixed, the balance seems to tilt in favour of this perception. Applying the pooled mean-group estimator of dynamic heterogeneous panels technique to data for eleven Sub-Saharan African economies over the period 1993 to 2014, this paper uncovers no significant effects of exchange rate volatility on imports. In the case of exports, however, the study finds a negative effect of volatility in the short-run, consistent with the above view, but a positive impact in the long-run.
