Exchange Rate Volatility Effects on Kenya's Exports

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Since the adoption of a flexible exchange rate system in most countries, there has been concern among economists and policy makers about the significant volatility produced by the system.

Nevertheless, the effects of exchange rate volatility on disaggregated exports in developing countries are unclear.

In particular, this book presents an evaluation of the effects of exchange rate volatility on Kenya’s French beans real exports to major trading partners in the European Union.

Monthly data for the period from January 1990 to December 2011 was used in the estimation of an export demand model.

The results suggest a significant negative effect of exchange rate volatility on French beans real exports.

Thus policy makers need to maintain a well managed exchange rate regime that will ensure a non-volatile behavior.

This book significantly contributes to the existing body of knowledge on the effects of exchange rate volatility on exports and is particularly essential to researchers, farmers and policy analysts in the sphere of international economics.

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