@article{Maphalle:338751,
      recid = {338751},
      author = {Maphalle, Mohakanegi Isaac and Oyekale, Abayomi Samuel},
      title = {Effect of Real Exchange Rates on Fruit Exports in South  Africa: A Vector Error Correction Model (VECM) Approach},
      journal = {Journal of Agribusiness and Rural Development},
      address = {2023},
      year = {2023},
      abstract = {The magnitude of a country’s exports positions it for  international competitiveness. This study examined the  effect of real exchange rates (RER) on fruit exports in  South Africa and determined the direction of causality  between fruit exports and exchange rate changes. The  dataset covered for the period 1971–2019. The variables  were tested for stationarity and the Vector Error  Correction Model (VECM) was used for data analysis. The  results showed that the unit root and cointegration tests  indicated that the data were integrated of order one  [I(1)]. The long-run OLS regression revealed that a  weakening exchange rate has a positive effect on both  export values and quantities. The study discovered that  government spending in the form of Gross Fixed Capital  Formation (GFCF) has a small but positive effect on fruit  exports, thereby boosting exports by allowing the fruits to  be sold at affordable prices in foreign markets. Also,  government spending in the form of GFCF had a small but  positive effect on fruit exports. It was concluded that the  real exchange rate influences fruit exports in South  Africa, and that the government and other stakeholders  should work to enhance transportation and related  infrastructure through increased public investment for  streamlining requisite logistics for boosting agricultural  export performance.},
      url = {http://ageconsearch.umn.edu/record/338751},
      doi = {https://doi.org/doi.org/10.17306/J.JARD.2023.01699},
}