Impact of Exchange rate volatility on Global Value Chains Participation Evidence from panel African countries Gilhaimé MOUANDA-MOUANDA

Impact of Exchange rate volatility on Global Value Chains Participation

Evidence from panel African countries

Author (s): 

Gilhaimé MOUANDA-MOUANDA

Abstract

The aim of this study is to investigate the impact of exchange rate volatility on global value chain participation within a panel of 25 African countries. The main result reveals that there is an adverse effect. When exchange rate volatility interacts with activities in upstreamness, we notice that the impact on GVC participation is significantly positive unlike the association between exchange rate fluctuation and sectors in downstreamness. The paper sheds some light on the role played by the currency union to promote trade in value-added. It is clearly shown that African countries which are non-members of a currency union have better performance in global value chain participation. These findings may enable, on the one hand, authorities in charge of monetary policy to implement strategies of mitigating this harmful impact on trade in value-added. On the other hand, it is worthwhile to in-depth the understanding of factors likely to distort trade performance within States members of a currency union particularly in the context of cross-border production-sharing activities.

Key words: exchange rate volatility; global value chains; currency union; African countries.

 

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Title:

Impact of Exchange rate volatility on Global Value Chains Participation Evidence from panel African countries

Author:

Gilhaimé MOUANDA-MOUANDA

Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.2631647
Media: Online
Volume: 3
Issue: 3
Acceptance Date: 06/04/2019
Date of Publication: 07/04/2019
PDF URL: http://ijsab.com/wp-content/uploads/344.pdf
Free download: Available
Page: 29-40
First Page: 29
Last Page: 40
Paper Type: Research Paper
Current Status: Published

Cite This Article:

MOUANDA-MOUANDA, G. (2019). Impact of Exchange rate volatility on Global Value Chains Participation Evidence from panel African countries. International Journal of Science and Business, 3(3), 29-40. doi: https://doi.org/10.5281/zenodo.2631647

Retrieved from http://ijsab.com/wp-content/uploads/344.pdf

 

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Gilhaimé MOUANDA-MOUANDA, University of International Business and Economics (UIBE) , Beijing, China.

 

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DOI: https://doi.org/10.5281/zenodo.2631647

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