The impact of exchange rate on clothing exports in South Africa, from 1994Q1 tot 2014Q1

Abstract

The study empirically examines the impact of exchange rate on clothing exports in South Africa, for the period 1994Q1 to 2014Q1 .Secondary data is obtained from Quantec data warehouse and SARB. Econometric techniques are used to test the impact of exchange rate on clothing exports in South Africa, using Johansen cointergration test. ECM was applied to establish to establish the long-run and short run relationship. The results verify a long-run positive relationship which exists between the two variables under study, positive relationship between exchange rate and clothing exports. The findings and conclusions are valuable for international organisations and governments. In the area of designing future policies and approaches the government should fix South Africa's exchange rate, so it exports more than it imports having a competitive advantage and more employment