The impact of exchange rate on exports in Uganda

Abstract

The objective of this paper is to examine the impact of exchange rate on exports in Uganda. The study used ordinary least squares and the error correction model (ECM) for estimation of a time series data covering the period 1990-2015. The variables under consideration included gross capital formation, GDP growth, Trade and real effective exchange rate. All the explanatory variables have a positive significant impact on exports. The study recommended that the government should adopt sustainable and stable exchange rate policy measures to promote greater exchange rate stability that would help to enhance the real exports of the economy