Browsing by Author "Ongujobi, Olamide Doris"

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    The impact of the exchange rate on the manufacturing sector in South Africa (1983-2012)
    (University of Fort Hare, 2015-07) Ongujobi, Olamide Doris
    The study, in its quest to explore the impact of Real Exchange Rate on the manufacturing sector in South Africa over the quarterly period 1983-2012 (30years), a VAR technique and VECM by Johansen (1991, 1995) estimation techniques were used. The study adopted Hodge (2012) model using five variables with GDP manufacturing as the dependent variable and the independent variables include; real exchange rate, gross fixed capital formation, interest rate and trade openness. The empirical analysis shows that real exchange rate has a significant impact on the South Africa manufacturing Sector. The impulse response and variance decomposition analysis in this study also revealed that interest rate has a significant impact on the South African manufacturing Sector. Furthermore, gross fixed capital formation has a positive impact on the manufacturing sector. The same cannot be said about the trade openness in the short: run.