Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/1664
Title: ON THE CAUSES AND EffECTS OF EXCHANGE RATE VOLATILITY ON ECONOMIC GROWTH: EVIDENCE FROM GHANA
Authors: Alagidede, P.
Ibrahim, M.
Keywords: Volatility
GDP growth
Exchange rates
GARCH
GMM
Ghana
Issue Date: 2017
Publisher: Routledge
Series/Report no.: Vol.18;Issue 2
Abstract: What drives exchange rate volatility, and what are the effects of fluctuations in the exchange rate on economic growth in Ghana? These questions are the subject matter of this study. The results showed that while shocks to the exchange rate are mean reverting, misalignments tend to correct very sluggishly, with painful consequences in the short run as economic agents recalibrate their consumption and investment choices. About three quarters of shocks to the real exchange rate are self-driven, and the remaining one quarter or so is attributed to factors such as government expenditure and money supply growth, terms of trade and output shocks. Excessive volatility is found to be detrimental to economic growth; however, this is only up to a point as growth-enhancing effect can also emanate from innovation, and more efficient resource allocation.
URI: http://hdl.handle.net/123456789/1664
ISSN: 1522-8916
Appears in Collections:School of Business and Law



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