Exchange rate fluctuations and trade balance performance in Tanzania

Tanzania has been pursuing an active exchange rate policy basically to maintain a viable external account position, and competitiveness of its products in the world market. The estimated results demonstrate that exchange rate has a significant positive and negative impact on trade balance in the short-run. Thus, currency depreciation has been a significant stimulus for country's exports growth and improvement in current account position only for short run. The study found that the short-run behavior of the trade balance in response to real exchange rate shocks show an S-pattern rather than the J-curve pattern. Therefore, there is a need for government to implement the policy that focuses on the production of imported-substituted goods.

Product details

• Authors: Neema Mfugale
• Publisher: LAP Lambert Academic Publishing
• Languages: English
• Product format: Paperback / Softback
• Released: 01.01.2017
• EAN: 9783659976865
• ISBN: 978-3-659-97686-5
• No. of pages: 96
• Subject: Social sciences, law, business > Business > International economy