TITLE:
Exchange Rate Volatility and Economic Growth in the Democratic Republic of Congo (DRC)
AUTHORS:
Allegra Kabamba Mbuyi, Catherine Kato-Kale Kakasi, Clément Muya Ntumba, Elvis Imbaleva Mpebale
KEYWORDS:
Exchange Rate Volatility, VAR, Economic Growth, DRC
JOURNAL NAME:
Modern Economy,
Vol.13 No.5,
May
31,
2022
ABSTRACT: This paper studied the effects of exchange rate
volatility on economic growth. Our empirical analysis focuses on the Democratic
Republic of Congo (DRC) from 1990 to 2021 and is based on the vector
autoregression (VAR) model. The results show that economic growth is a function
of its own innovations, the exchange rate and trade openness. Also, a
depreciation of the domestic currency against the foreign currency hinders
economic growth. These results suggest a strengthening of resilience through
the diversification of economic activity in order to improve the international
competitiveness of the Congolese economy.