Design – The paper exhibits that Ghana’s weak currency can be leveraged to boost international tourism and with that, financial development. This view of tourism-led growth is in part supported by proof during which tourism receipts are a significant supply of international exchange earnings for numerous developing economies. Methodology – The relationship between economic development, tourism receipts, and foreign money valuation is examined utilizing a vector error correction mannequin. This approach offers a possibility to not solely confirm the existence of a dynamic relationship among the many time sequence but in addition, the existence of causality each within the short- and long-run. Findings – Cointegration checks confirm the existence of a long-run relationship among the many variables. Both tourism and exchange price are found to positively impact economic growth.
This research examined the validity of effectivity market hypothesis for the oil market by employing a novel Fourier unit root check that accounts for sharp shifts and easy breaks based mostly on day by day data. Our outcomes established the existence of structural shifts and nonlinearity within the oil market indices suggesting that oil market is inefficient when structural breaks is calibrated into the model. Unlike results obtained from current traditional unit root test, results from sharp shifts and easy breaks unit root take a look at suggests the rejection of unit root null for every of the oil indices.
The outcomes of our research recommend the shortage of a stable relationships between prices of crude oil and foreign money exchange rates. It can additionally be impossible to look the ultimate source of the energy in food is ______. at a long-term, unequivocal tendency of the currencies of oil exporting countries being positively correlated with oil prices. This paper proposes and estimates a structural vector autoregression model to research the dynamic relationship between these variables.
On eight January 2010, the government modified the official mounted exchange rate from 2.15 bolívares fuertes (Bs.F) to 2.60 bolívares and four.30 bolívares . On four January 2011, the fixed exchange rate grew to become four.30 bolívares per US$1.00 for either side of the financial system. On 13 February 2013, the bolívar was devalued to six.30 bolívares per USD in an try and counter budget deficits. The black market value of the bolívar fuerte and the bolívar soberano has been significantly lower than the fixed exchange rate and other rates set by the Venezuelan government . In November 2013, it was virtually one-tenth that of the official fixed trade price of 6.3 bolívares per U.S. greenback.
A frequent consensus is that oil shocks represent vulnerabilities for both exporters and importers of the product, whereby the shocks are transmitted via trade. Immediately following the introduction of the bolívar soberano, the inflation price increased from sixty one,463% on 21 August to 65,320% on 22 August. By 24 August 2018, the introduction of the bolívar soberano had not prevented hyperinflation.
Since the start of the presidential disaster in Venezuela in January 2019, the curve has been less steep than previously, which means that the rate at which the value is lost, inflation, has slowed down. By early April 2019, the 18,000 Bs.S monthly minimum wage was the equivalent of $5.50 – lower than the worth of a McDonald’s Happy Meal. Ecoanalitica estimated that prices jumped by 465% within the first two and a half months of 2019.
