The impact of exchange rate risk on Africa's imports of world poultry

ABSTRACT

This study's objective is to examine the impact of exchange rate risk on Africa's poultry imports. Both random and fixed effects estimates are derived using a generalised gravity model and data from 2000–2012. Findings show that the distance between importing and exporting countries has a negative effect on poultry imports into Africa. The importing country's gross domestic product (GDP) has a positive effect on the poultry trade to Africa, while short- and long-term exchange rate risk causes a reduction in poultry trade to African countries. Also, an increase in the total poultry exported by a country has a positive impact on the importing African country.

Keywords:

• Africa
• poultry
• exchange rate risk
• gravity model

JEL codes:

• C32
• F14
• Q17