Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/321438 
Year of Publication: 
2024
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 12 [Issue:] 1 [Article No.:] 2318974 [Year:] 2024 [Pages:] 1-15
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
The study investigated GVC and exchange rate comovements from 1990 to 2018. The study employed a continuous wavelet coherence procedure to investigate the time-frequency dependence of global value chain (GVC) participation and exchange rates relationship in Africa. We find from the study that there is interdependency between exchange rates and global value chain participation only in the very short term for all selected countries. The study finds interdependent and well-governed networks continue to experience muted effects of exchange rate effects on GVC participation while independent firms in countries participating in GVC forward integration are negatively impacted. The use of continuous wavelet coherence technique to monitor global value chain (GVC) participation levels amidst extreme market volatility offers unprecedented insights for both countries and firms. By enabling the measurement of interdependency between exchange rates and African economies' participation in GVCs, this approach facilitates informed decision-making and risk management strategies. It empowers stakeholders to gauge the impact of macroeconomic variables, particularly exchange rates, on GVC involvement, thereby fostering adaptability and resilience in an ever-changing economic landscape. Ultimately, this innovation enhances the ability of nations and businesses to navigate volatile market conditions and optimize their engagement in global value chains.
Subjects: 
Economic growth
macroeconomic mechanisms
Africa
global valuechains (GVCs)
exchangerate
continuous wavelet transformation
JEL: 
F31
F15
F40
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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