Oil price and exchange rate volatilities: implications on the cost of living in an OPEC member country—Nigeria

We study the impact of large exchange rate devaluations on the cost of living at different points on the income distribution. Poor households spend relatively more on tradeable product categories and consume lower-priced varieties within categories. Changes in the relative price of tradeables and of lower-priced varieties affect the cost of living of low-income relative to high-income households. We quantify these effects following the 1994 Mexican devaluation and show that they can have large distributional consequences. Two years post-devaluation, the cost of living for the bottom income decile rose 1.48 to 1.62 times more than for the top income decile. (JEL D12, D31, E31, F31, O12, O19, O24)

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The Relationship between Nominal Exchange Rate and Sectoral Output: An Emprical Analysis

International Conference on Eurasian Economies 2014 ◽

10.36880/c05.00901 ◽

2014 ◽

Author(s):

Ahmet Ay ◽

Şerife Özşahin ◽

Mustafa Gerçeker

Keyword(s):

Exchange Rate ◽

Public Expenditure ◽

Nominal Exchange Rate ◽

Oil Price ◽

Quarterly Data ◽

Sectoral Output ◽

The Cost ◽

Bound Test ◽

The Relationship

In this study, it is investigated the existence of the long term relationship between nominal exchange rate and sectoral output for seven different sectors in Turkey by using control variables including money supply, total public expenditure, oil price and unemployment rate. For this purpose, possible relations are tried to be determined by using bound test and ARDL method for the period 1998 Q1-2011 Q3 with quarterly data. As a result of the bound test, it is achieved that there is a long term relationship in all sectors excluding construction. Based on this finding, it is estimated the long term coefficients and equations for the six sectors. These long term coefficients indicate that the rise in the TL/dollar nominal exchange rate affects sectoral output negatively in all sectors excluding finance because of the cost effects of imported input usage.

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EXCHANGE RATE RESPONSE TO OIL PRICE AND POLITICAL SHOCKS: WHAT CAN NIGERIA DO?

Journal of Life Economics ◽

10.15637/jlecon.8.2.08 ◽

2021 ◽

Vol 8 (2) ◽

pp. 237-246

Author(s):

Augustine Adebayo KUTU ◽

David Alaba ALORI ◽

Harold NGALAWA

Keyword(s):

Exchange Rate ◽

Exchange Rates ◽

Good Governance ◽

Oil Prices ◽

Oil Price ◽

Political Institution ◽

Oil Shocks ◽

Institutional Factor ◽

Asymmetric Impact ◽

The Cost

This study determines how political institution (factor) and oil prices play a significant role in exchange rate instabilities in Nigeria between and . Employing a VECM model with time series and structural analysis, the study decomposes the oil prices into positive and negative shocks. The findings show a symmetric impact from positive and negative oil shocks while political/institutional factor, on the contrary, indicates an asymmetric impact on exchange rates. The study, therefore, recommends that strong political institution that promotes good governance, accountability and transparency should be put in place. This will untimely reduce the cost of importation that prevents the country from reaping the benefits of positive oil price shocks. While this study employs one of the unique approaches to the study of exchange rates worldwide, it also provides insights to how institutional/political factor contribute to exchange rate instability in Nigeria.

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Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

Journal of Emerging Economies and Islamic Research ◽

10.24191/jeeir.v5i4.8834 ◽

2017 ◽

Vol 5 (4) ◽

pp. 27

Author(s):

Huda Arshad ◽

Ruhaini Muda ◽

Ismah Osman

Keyword(s):

Exchange Rate ◽

Capital Market ◽

Time Series Data ◽

Oil Prices ◽

Oil Price ◽

Series Data ◽

Sovereign Bond ◽

Long Run ◽

Short Run ◽

The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

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PREREQUISITES FOR THE FORMATION OF A MECHANISM FOR STATE REGULATION OF SOCIAL GUARANTEES IN THE REGION

International scientific journal Internauka Series Economical Sciences ◽

10.25313/2520-2294-2020-9-6287 ◽

2017 ◽

Author(s):

Vitaly Lobas ◽

◽

Elena Petryaeva ◽

Keyword(s):

Social Protection ◽

Well Being ◽

State Regulation ◽

The State ◽

Point Of View ◽

Periodic Review ◽

Cost Of Living ◽

Economic Relations ◽

State Management ◽

The Cost

The article deals with modern mechanisms for managing social protection of the population by the state and the private sector. From the point of view of forms of state regulation of the sphere of social protection, system indicators usually include the state and dynamics of growth in the standard of living of the population, material goods, services and social guarantees for the poorly provided segments of the population. The main indicator among the above is the state of the consumer market, as one of the main factors in the development of the state. Priority areas of public administration with the use of various forms of social security have been identified. It should be emphasized that, despite the legislative conflicts that exist today in Ukraine, mandatory indexation of the cost of living is established, which is associated with inflation. Various scientists note that although the definition of the cost of living index has a well-established methodology, there are quite a lot of regional features in the structure of consumption. All this is due to restrictions that are included in the consumer basket of goods and different levels of socio-economic development of regions. The analysis of the establishment and periodic review of the minimum consumer budgets of the subsistence minimum and wages of the working population and the need to form state insurance funds for unforeseen circumstances is carried out. Considering in this context the levers of state management of social guarantees of the population, we drew attention to the crisis periods that are associated with the market transformation of the regional economy. In these conditions, there is a need to develop and implement new mechanisms and clusters in the system of socio-economic relations. The components of the mechanisms ofstate regulation ofsocial guarantees of the population are proposed. The deepening of market relations in the process of reforming the system of social protection of the population should be aimed at social well-being.

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Wage disparities between high and low wage cities with and without the cost of living within Punjab and Sindh: An application of Oaxaca-Blinder using PSLM with HIES

Journal of Applied Economics and Business Studies ◽

10.34260/jaebs.441 ◽

2020 ◽

Vol 4 (4) ◽

pp. 1-14

Author(s):

Farrukh Mahmood ◽

Shumaila Hashim ◽

Uzma Iram ◽

Muhammad Zubair Chishti

Keyword(s):

Estimation Method ◽

Living Standards ◽

Wage Dispersion ◽

Cost Of Living ◽

Wage Policy ◽

Essential Component ◽

Sindh Province ◽

Economic Survey ◽

The Cost ◽

Wage Disparities

Wage disparities research hardly incorporate for the cost of living differences due to data restriction, while the wage disparity issue is the crucial area of economist interest. The study aims to examine the wage disparities between high and low wage cities for Punjab and Sindh province of Pakistan with and without the cost of living, deploying the data of Pakistan Social and Living Standards Measurement Survey (PSLM) with Household Integrated Economic Survey (HIES) for 2005, 2007, 2010, and 2013. Applying the Oaxaca-Blinder estimation method, the findings infer that wage dispersion is high without the cost of living model for both provinces (Punjab and Sindh) as compared to with cost of the living model. Moreover, the results reveal that the wage dispersion is greater in Punjab province than Sindh province. For policymakers, our study suggests that the cost of living is an essential component of the wage dispersion in Pakistan’s cities; it should be considered while formulating for wage policy.

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