THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES

This paper examines the nexus between export diversification and economic growth in G7 countries how exchange rate volatility affects this relationship. Using data covering from 1995 to 2018, study applies fully modified ordinary least squares (FMOLS) dynamic (DOLS) techniques examine long-run impact of on growth. The results show that significantly enhances countries. Nonetheless, growth-enhancing effect is inimically affected by volatility. We also document trade openness accelerates which supports trade-led hypothesis bloc. To best researchers' knowledge, there no specific relationship Besides, based a detailed review literature, we are unaware any empirical research considers moderating diversification-growth nexus.