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This study sought to investigate the relationship between exchange rate volatility and export performance in South Africa. The main objective of the study was to examine the impact of exchange rate volatility on export performance in South Africa. This relationship was examined using GARCH methods. Exports were regressed against real effective exchange rate, trade openness, and capacity utilisation. The research aimed to establish weather exchange rate volatility impacts negatively on export performance in the manner suggested by econometric model. The result obtained showed that exchange rate volatility had a significantly negative effect of South African exports in the period 2000-2011.
Chamunorwa et al. (Thu,) studied this question.
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