An analysis of the impact of the exchange rate on export perfomance in Namibia

dc.contributor.advisorMugano, Gift
dc.contributor.authorAmadhila, Orodesia
dc.date.accessioned2025-05-22T08:15:43Z
dc.date.available2025-05-22T08:15:43Z
dc.date.issued2019
dc.descriptionA research thesis submitted in partial fulfilment of the requirements for the degree of Master’s in Business Administration (Finance)
dc.description.abstractThe purpose of the study was to analyse the effect of the exchange rate on export performance in Namibia. Furthermore, the researcher was to investigate if there is a relationship between the exchange rate and export performance. The objectives of the study were to examine whether there is a long run relationship between real effective exchange rate and export performance in Namibia, to determine the casual relationship between real exchange rate and export performance in Namibia as well as to suggest policies for the mitigation of the impact on the domestic economy. The theories on which this paper was based are Marshal-Lerner Condition, Exchange Rate Pass-Through and The Balance of Payments theory. To investigate the existence of a long run relationship between exchange rate and export performance in Namibia, the Engle-Granger two-step estimation technique was employed. The technique entails the determination of the long term co-integration relationship through testing for stationarity of the residuals using Augmented Dickey Fuller (ADF) test. The study revealed that the variable exchange rate negatively affects export performance and that the coefficient is statistically significant. From the regression estimation it can be concluded that the theoretical proposition of the relationship between exchange rate and export performance is confirmed in the case of Namibia. A currency depreciation results in more exports while a currency appreciation results in a reduction in exports. Therefore, policy recommendations of the study included employing strong financial tools to hedge against change in the international market, such as: Accept the risk and transfer it through pricing, A void or minimise costly commodities, seek natural hedges and manage the risk through contracts
dc.identifier.urihttp://hdl.handle.net/11070/4001
dc.language.isoen
dc.publisherUniversity of Namibia
dc.subjectPerformance in Namibia
dc.subjectNamibia
dc.subjectExchange rate
dc.subjectMitigation
dc.subjectUniversity of Namibia
dc.titleAn analysis of the impact of the exchange rate on export perfomance in Namibia
dc.typeThesis
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