The Effects of Exchange Rate Volatility on Economic Growth of West African English-Speaking Countries

Abstract

This paper aims to examine the effects of exchange rate volatility on economic growth of West African English speaking countries. Macroeconomic data used for this study were obtained from World Bank Data Stream between 1980 until 2017 and analyzed using Stata 14 panel data regression analysis. The results obtained showed that the independent variable (real exchange rate) is statistically significant and negatively related to the dependent variable (GDP) in West African English speaking countries excluding time-invariant variables. This current study contributes empirically regarding the relationships between exchange rate volatility and economic growth of West African English speaking countries. From 1980-2017. The findings of this study will help the countries under review and other nations in general to improve on monetary policy; it could be used by the central bank of West African English speaking countries as a guide for effective monetary policy.