scholarly journals Real Exchange Rates, Income per Capita, and Sectoral Input Shares

2020 ◽  
Vol 102 (1) ◽  
pp. 180-194 ◽  
Author(s):  
Javier Cravino ◽  
Sam Haltenhof
Keyword(s):  
Exchange Rates ◽  
Price Level ◽  
Real Exchange Rates ◽  
Relative Price ◽  
Gdp Per Capita ◽  
Intermediate Input ◽  
Intermediate Inputs ◽  
Sectoral Differences ◽  
Per Capita ◽  
Input Prices

Aggregate price levels are positively related to GDP per capita across countries. We propose a mechanism that rationalizes this observation through sectoral differences in intermediate input shares. As productivity and income grow, so do wages relative to intermediate input prices, which increases the relative price of nontradables if tradable sectors use intermediate inputs more intensively. We show that sectoral differences in input intensities can account for about half of the observed elasticity of the aggregate price level with respect to GDP per capita. The mechanism has stark implications for industry-level real exchange rates that are strongly supported by the data.

The main determinants effecting international visitor arrivals in New Zealand

2016 ◽  
Vol 23 (5) ◽  
pp. 921-940 ◽  
Author(s):  
Azmat Gani ◽  
Michael D. Clemes
Keyword(s):  
New Zealand ◽  
Financial Crisis ◽  
Exchange Rates ◽  
Global Financial Crisis ◽  
Good Governance ◽  
Real Exchange Rates ◽  
Relative Prices ◽  
Per Capita ◽  
Main Determinants ◽  
The Global Financial Crisis

This study examines the main determinants of international visitor arrivals in New Zealand in light of New Zealand’s major earthquakes in 2010 and 2011 as well as the global financial crisis of 2007. Our results provide strong evidence that visitor origin country per capita incomes, relative prices, real exchange rates, the distance between New Zealand and its main visitor origin countries and New Zealand’s record of good governance are statistically significant determinants of visitor arrivals to New Zealand. Our findings also reveal a negative but statistically insignificant effect of the earthquakes of 2010 and 2011on visitor arrivals to New Zealand. Our findings do not provide any significant regressive effect of the global financial crisis on visitor arrivals to New Zealand.

scholarly journals Dampak Kebijakan Tarif dan Non-tarif Negara-Negara Importir atas Ekspor Tuna Olahan Indonesia

2021 ◽  
Vol 26 (3) ◽  
pp. 468-478
Author(s):  
Maharani Tristi ◽  
Harianto Harianto ◽  
Amzul Rifin
Keyword(s):  
Exchange Rates ◽  
Export Performance ◽  
Gdp Per Capita ◽  
Cross Sectional ◽  
Export Prices ◽  
Economic Distance ◽  
Negative Effect ◽  
Per Capita ◽  
Actual Exchange ◽  
The Impact

This study aims to analyze the impact of the tariff and non-tariff policies implementation of the importing countries on the export performance of Indonesian processed tuna. A cross-sectional gravity model analysis was conducted to find out the impact of these policies on exports. The variables used include GDP per capita of the importing countries, population, economic distance, export prices, actual exchange rates, tariff policies, and non-tariff policies in the form of sanitary and phytosanitary (SPS) and technical barriers to trade (TBT). The estimation shows that the variables of GDP per capita of the importing countries, population, exchange rates, export prices, and SPS give a positive and significant effect on the trade of Indonesian processed tuna commodities. On the other hand, economic distance and TBT policy give a negative and significant impact on the volume of this particular commodity. Meanwhile, the tariff policy implementation also give a negative effect on the export volume, but it is not significant.   Keywords: cross sectional gravity, export performance, non-tariffs, tariffs

Shipping the good coffee out: the Alchian–Allen theorem and relative demand for Brazilian Arabica and Robusta coffees

2019 ◽  
Vol 46 (4) ◽  
pp. 697-712 ◽  
Author(s):  
Dragan Miljkovic ◽  
Miguel I Gómez
Keyword(s):  
Transportation Cost ◽  
Relative Price ◽  
Gdp Per Capita ◽  
Export Demand ◽  
High Quality ◽  
International Commodity ◽  
Relative Demand ◽  
International Prices ◽  
Per Capita ◽  
Time Periods

Abstract The validity of the Alchian–Allen (AA) theorem is tested for the export demand of Brazilian Arabica (high-quality) and Robusta (low-quality) coffees. We check for robustness using different model specifications, estimation procedures and time periods. Given that international prices for both Brazilian naturals (Arabica varieties) and Robusta are determined on international commodity exchanges, the change in relative price varies by country only due to changes in transportation costs. Results show that the consumption of Arabica increases relative to the consumption of Robusta with distance, therefore with the corresponding increasing per-unit transportation cost. We confirm that GDP per capita does not impact relative demand for coffee.

scholarly journals Examining the Input and Output Linkages in Agricultural Production Systems

Agriculture ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 54
Author(s):  
Dong Hee Suh ◽  
Charles B. Moss
Keyword(s):  
Agricultural Production ◽  
Crop Production ◽  
Agricultural Sector ◽  
Livestock Production ◽  
Relative Price ◽  
Differential Systems ◽  
Price Changes ◽  
Intermediate Inputs ◽  
Input And Output ◽  
Input Prices

This paper conducts a comprehensive analysis of the agricultural sector’s resource allocation and production decisions. This paper uses the differential systems with quasi-fixity to evaluate the complete agricultural production system, which examines the input and output linkages in terms of elasticities. The differential systems are estimated using the maximum likelihood estimation technique based on the two-step profit-maximizing procedure in theory. The results reveal that livestock production requires more intermediate inputs, but crop production depends on all the inputs, such as labor, capital, and intermediate inputs. In addition, the results show that input demand is inelastic, indicating that the agricultural sector has little flexibility in adjusting the demand for inputs in response to changes in input prices. Substitutable relationships among labor, capital, and intermediate inputs exist, which may reduce the pressures on production costs when input prices rise. Regarding the quasi-fixed input, land expansion changes the composition of labor and intermediate inputs, showing that the agricultural sector reduces the intensive margin when it pursues the extensive margin. Furthermore, the results show that agricultural supply is not very responsive to the respective price changes. Along with the inelastic output supply, there exist substitutable relationships between livestock and crop supply, showing that relative price changes can alter output composition in supply. The agricultural sector also reallocates more land areas into crop production rather than livestock production.

When Fast-Growing Economies Slow Down: International Evidence and Implications for China

2012 ◽  
Vol 11 (1) ◽  
pp. 42-87 ◽  
Author(s):  
Barry Eichengreen ◽  
Donghyun Park ◽  
Kwanho Shin
Keyword(s):  
Growth Rate ◽  
Exchange Rates ◽  
Real Exchange Rates ◽  
Fast Growing ◽  
International Evidence ◽  
Percentage Points ◽  
International Prices ◽  
International Data ◽  
Per Capita

Using international data starting in 1957, we construct a sample of cases where fast-growing economies slow down. The evidence suggests that rapidly growing economies slow down significantly, in the sense that the growth rate downshifts by at least 2 percentage points, when their per capita incomes reach around US$ 17,000 in year-2005 constant international prices, a level that China should achieve by or soon after 2015. Among our more provocative findings is that growth slowdowns are more likely in countries that maintain undervalued real exchange rates.

Searching for new Sources of growth. Are the Developing Countries Catching up with the Developed ones?

2015 ◽  
pp. 30-53
Author(s):  
V. Popov
Keyword(s):  
Developing Countries ◽  
Western Europe ◽  
Gdp Per Capita ◽  
The West ◽  
Catching Up ◽  
The Us ◽  
The World ◽  
Economic Divergence ◽  
Per Capita ◽  
Relative Standing

This paper examines the trajectory of growth in the Global South. Before the 1500s all countries were roughly at the same level of development, but from the 1500s Western countries started to grow faster than the rest of the world and PPP GDP per capita by 1950 in the US, the richest Western nation, was nearly 5 times higher than the world average and 2 times higher than in Western Europe. Since 1950 this ratio stabilized - not only Western Europe and Japan improved their relative standing in per capita income versus the US, but also East Asia, South Asia and some developing countries in other regions started to bridge the gap with the West. After nearly half of the millennium of growing economic divergence, the world seems to have entered the era of convergence. The factors behind these trends are analyzed; implications for the future and possible scenarios are considered.

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