The response of Zimbabwe tobacco exports to real exchange rates volatility : 1980-2019

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dc.contributor.author Mutodi, Knowledge
dc.contributor.author Maziriri, Eugine Tafadzwa
dc.contributor.author Chuchu, Tinashe
dc.date.accessioned 2020-07-21T07:29:28Z
dc.date.available 2020-07-21T07:29:28Z
dc.date.issued 2020-07
dc.description.abstract The focus of this study was on investigating the response of tobacco exports to real exchange rates and real exchange rate volatility and other factors in Zimbabwe using secondary data spanning from 1980 to 2019. Bilateral nominal exchange rates and time-variant weights of Zimbabwe’s 10 major trading partners were calculated and used to compute the real exchange rate index. The time-dependent weighting system was used to better represent the evolution of trade patterns in the index. The arithmetic method was employed for computing the index. Generalized autoregressive conditional heteroskedasticity (GARCH) and autoregressive conditional heteroscedasticity (ARCH) models were used to generate the real exchange rate volatility index. The export response function was adopted as the tobacco exports response model. The variables in the tobacco exports response model were the realworld Gross Domestic Product (GDP), real exchange rate, terms of trade, real exchange rate volatility and dollarization. A vector error correction model (VECM) was used to estimate the response of tobacco exports to real exchange rate, real exchange rate volatility and other factors. The VECM results indicated that real world GDP was insignificant in both the short and long run. In the long run, the real exchange rate appreciation had a negative impact on tobacco exports. Conversely, in the short run, the depreciation of real exchange rate had a positive impact on tobacco exports. Hence, the government has to adopt other mechanisms that reduce uncertain movements of exchange rates. en_ZA
dc.description.department Marketing Management en_ZA
dc.description.librarian hj2020 en_ZA
dc.description.uri http://www1.up.poznan.pl/jard/index.php/jard en_ZA
dc.identifier.citation Mutodi, K., Chuchu, T., & Maziriri, E. (2020). THE RESPONSE OF ZIMBABWE TOBACCO EXPORTS TO REAL EXCHANGE RATES VOLATILITY. Journal of Agribusiness and Rural Development, 56(2), 201–219. https://doi.org/10.17306/J.JARD.2020.01241. en_ZA
dc.identifier.issn 1899-5241 (print)
dc.identifier.issn 1899-5772 (online)
dc.identifier.other 10.17306/J.JARD.2020.01241
dc.identifier.uri http://hdl.handle.net/2263/75360
dc.language.iso en en_ZA
dc.publisher Poznan University of Life Sciences en_ZA
dc.rights © Copyright by Wydawnictwo Uniwersytetu Przyrodniczego w Poznaniu. Article is licensed under a Creative Commons licence CC BY-NC (Attribution-NonCommercial). en_ZA
dc.subject Real exchange rate (RER) en_ZA
dc.subject Real exchange rate volatility (RERV) en_ZA
dc.subject Vector error correction model (VECM) en_ZA
dc.title The response of Zimbabwe tobacco exports to real exchange rates volatility : 1980-2019 en_ZA
dc.type Article en_ZA


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