This study estimated an error correction model of the impact of real effective exchange
rate volatility on the performance of non-traditional exports for Zambia between 1965
and 1999. Using a generalized autoregressive conditional heteroscedasticity (GARCH)
measure of real exchange rate volatility, the findings show that exchange rate volatility
depresses exports in both the short run and the long run. The results also suggest that
supportive macroeconomic factors are important in enhancing non-traditional exports
in the country. This requires packaging a set of incentives aimed at removing anti-export
bias policies so as to promote exports, particularly of non-traditional products, given
their standing in the economic growth agenda for the country.