EXCHANGE RATE MOVEMENTS AND AGRICULTURAL TRADE IN MALAWI
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Date
2020-08-24
Authors
NG’ONG’OLA, CHIMWEMWE
Journal Title
Journal ISSN
Volume Title
Publisher
UNIVERSITY OF MALAWI
Abstract
Malawi is one of the countries that heavily relies on agriculture which accounted for
27.9% of the country’s Gross Domestic Product (GDP) in 2016. About 80% of
Malawi’s exports are agricultural products with tobacco, sugar, tea and cotton as the
main exports while imports are dominated by machinery, fuels, fertilizers and other
intermediate inputs. The study aimed at examining the relationship between exchange
rate movements and agricultural trade in Malawi specifically to assess the impact of
exchange rate movements on agricultural exports and to assess the impact of exchange
rate movements on agricultural imports. The study used annual data from 1980 to 2017
and the Autoregressive Distributed Lag was the estimation model used. The study found
that there was no relationship between exchange rate movement and agricultural
exports as well as agricultural imports in the long run however in the short run there
was a negative relationship between exchange rate and agricultural imports.
Description
International Economics