Analysis shows exchange rate volatility decreases agricultural export performance in South Africa, indicating need for currency stabilization policies.
Key Points
Exchange rate volatility negatively impacts agricultural exports in South Africa, affecting competitiveness.
The analysis using the EGARCH model shows a significant relationship between exchange rate and agricultural exports.
Interest rates negatively influence agricultural exports, while trade openness and investment promote exports positively.
Implementing currency stabilization policies can mitigate volatility and enhance agricultural export performance.