The Effects of Exchange Rate on Export Performance in Tanzania: An Empirical Research for Financial Competition

The Effects of Exchange Rate on Export Performance in Tanzania: An Empirical Research for Financial Competition

Haroub Hamad Omar, Nildag Basak Ceylan, Ayhan Kapusuzoglu
ISBN13: 9781799825593|ISBN10: 1799825590|EISBN13: 9781799825609
DOI: 10.4018/978-1-7998-2559-3.ch003
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MLA

Omar, Haroub Hamad, et al. "The Effects of Exchange Rate on Export Performance in Tanzania: An Empirical Research for Financial Competition." Handbook of Research on Decision-Making Techniques in Financial Marketing, edited by Hasan Dinçer and Serhat Yüksel, IGI Global, 2020, pp. 47-67. https://doi.org/10.4018/978-1-7998-2559-3.ch003

APA

Omar, H. H., Ceylan, N. B., & Kapusuzoglu, A. (2020). The Effects of Exchange Rate on Export Performance in Tanzania: An Empirical Research for Financial Competition. In H. Dinçer & S. Yüksel (Eds.), Handbook of Research on Decision-Making Techniques in Financial Marketing (pp. 47-67). IGI Global. https://doi.org/10.4018/978-1-7998-2559-3.ch003

Chicago

Omar, Haroub Hamad, Nildag Basak Ceylan, and Ayhan Kapusuzoglu. "The Effects of Exchange Rate on Export Performance in Tanzania: An Empirical Research for Financial Competition." In Handbook of Research on Decision-Making Techniques in Financial Marketing, edited by Hasan Dinçer and Serhat Yüksel, 47-67. Hershey, PA: IGI Global, 2020. https://doi.org/10.4018/978-1-7998-2559-3.ch003

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Abstract

The chapter analyzes the effects of exchange rate of Tanzanian shilling on the country's exports performance applying Vector Auto-Regressive (VAR) model covering the sample period from 1993:Q1 to 2016:Q4. Cointegration and causality tests are performed to investigate the short- and long-term relationships between the variables to evaluate the financial competition. The results show that; there is no long-term relationship (cointegration) between exchange rates and exports and between foreign demand and exports. Moreover, the results of causality test show no short-term relationship (causality) between exchange rates and exports and between foreign demand and exports. As the findings suggest, the exchange rate level of Tanzanian shilling (in nominal terms) does not statistic-significantly affect the country's exports performance.

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