The Impacts Of Exchange Rate On International Trade And Economic Growth:Case Study Of USA,CHINA And TOGO

Our study analyses the effects of Exchange Rate in International Trade and Economic development.We used the data of Trade Balance,Real Effective Exchange Rate and Real GDP from 1982 to 2016 for our analysis.USA,China and Togo were the countries of study and the Vector Autoregressive approach was the model of interest.Our results show that The Real Effective Exchange Rate doesn't have any significant effect on USA and Togo's Trade Balance.However,it has a negative effect at optimal lag at 1% significant level on China's Trade Balance.The results also show that at optimal lag,the Real Effective exchange rate has no significant effects on the Real GDP of USA and China but has a negative effect on the real GDP of Togo at 10% significant level.