scholarly journals Trade Patterns of Bangladesh with India and China: An Empirical Evidence of the PPP Theory

2019 ◽  
Author(s):  
Kazi Ashraful Alam ◽  
Gazi Salah Uddin ◽  
Md. Mahmudul Alam
Keyword(s):  
Purchasing Power Parity ◽  
Power Parity ◽  
Trade Patterns ◽  
Long Run ◽  
Foreign Countries ◽  
Inflation Rates ◽  
Trading Partners ◽  
Trade Partner ◽  
Trade Partners ◽  
India And China

The paper examines the existence of the Purchasing Power Parity (PPP) theory for both Bangladesh and its two important trading partners- India and China. The PPP theory is an attempt to explain and perhaps more importantly measure statistically, the equilibrium rate of exchange and its variation by means of the price levels and their variations in different countries. The main purpose of the study is to get a comparative picture of trade balance between Bangladesh (home country) and two major trade partners, i.e. India and China (foreign countries) over a given period of time by using the PPP . The empirical results of the study provides an explanation of how relative inflation rates (changes of price level) between two countries can influence an exchange rate and also critically focuses on the degree of deviation between countries which may help to draw a forecast long-run movements in exchange rates. Finally the results also specify about the trade patterns among the countries and fairly conclude the efficient and beneficial trade partner in respect of Bangladesh with India and China.

scholarly journals The Trade Of Indonesian Spice Comodities In International Market

Agro Ekonomi ◽  
2019 ◽  
Vol 30 (1) ◽  
Author(s):  
Herdiana Anggrasari ◽  
Jangkung Handoyo Mulyo
Keyword(s):  
Secondary Data ◽  
International Market ◽  
Trade Patterns ◽  
Market Intelligence ◽  
Commodity Export ◽  
Trading Partners ◽  
Trade Partner ◽  
Spice Trade ◽  
Trade Partners

This research is aimed to (1) observe the trade patterns and domination export in the spice commodities between Indonesia in international market and the countries as its main trade partners, and (2) observe the performance of the export and import in industry of Indonesia spices with its trade partner countries. Grubel-Lloyd Index (GLI) were used to detect whether the trade patterns in spice industry is as intra-industry or as inter-industry as well as to figure out the domination of the spice commodity export of Indonesia to its trade partner countries. The performance of the export and import in spice industry could be analyzed using the share of export and import between Indonesia and its trade partner countries. This research used the secondary data obtained from UNComtrade in a 15-year period (2002-2016) by concerning with a number of the main trade partner countries. The results of the research showed that the trade of Indonesian spice commodities in international market and among its main trade partners is categorized as a partial industry. Indonesia overall dominates the spice trade with its main trading partners; thus, the trade balance of Indonesian spice commodities is surplus. It is only with China and India in which the trade pattern is categorized as the intra-industry. Government needs to do some various efforts to encourage the increase of exports of Indonesian spices in the international market by developing market intelligence, enhancing the role of attachés in the spice trade diplomacy in the partner countries and potential countries.

scholarly journals Nonlinear Cointegration and Asymmetric Adjustment in Purchasing Power Parity of the USA, Germany, and Pakistan

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-7
Author(s):  
Kashif Ali ◽  
Hafsa Hina ◽  
Muhammad Ijaz ◽  
Mahmoud El-Morshedy
Keyword(s):  
Exchange Rate ◽  
Purchasing Power Parity ◽  
Purchasing Power ◽  
Power Parity ◽  
Asymmetric Adjustment ◽  
Long Run ◽  
Nominal Exchange Rates ◽  
Trading Partners ◽  
The Usa ◽  
The Exchange Rate

The current study explores nonlinear cointegration as well as asymmetric adjustment to investigate the long-run purchasing power parity in three major trading partners of Pakistan. The ESTAR and LSTAR models were used to investigate the behavior of the nominal exchange rates. The findings declared that series follows the nonlinear exchange rate. The asymmetric behavior of the exchange rate allows the threshold cointegration model to be implemented. In the case of Pakistan-China, the result suggests that long-run PPP holds. As a result, trading will be more profitable if the exchange rate is varied in relation to major trading partners rather than just the US dollar.

scholarly journals On The Purchasing Power Parity in Turkey: The Role of Structural Changes

2017 ◽  
Author(s):  
Şaban Nazlıoğlu ◽  
Çağın Karul ◽  
Ahmet Koncak ◽  
İlhan Küçükkaplan
Keyword(s):  
Purchasing Power Parity ◽  
Structural Changes ◽  
Exchange Rate Policy ◽  
Purchasing Power ◽  
The European Union ◽  
Power Parity ◽  
Oriented Growth ◽  
Long Run ◽  
Equilibrium Exchange ◽  
Trading Partners

Turkey as an emerging country and one of the fastest growing economies during the last decade has been implementing the trade-oriented growth model since 1980. The exchange rate policy in that respect is at the center of trade and monetary policies. Given the importance of constructing fundamental equilibrium exchange rates, the long-run PPP hypothesis has been empirically investigated during the last decade. We re-examine the purchasing power parity (PPP) hypothesis for Turkey with her ten major trading partners and find out that when the structural shifts are taken into account, there is a strong evidence in favor of the validity of PPP hypothesis. An interesting finding also is that the PPP hypothesis seems to hold for the European Union countries.

scholarly journals Regional trade and food security challenges: The case of SAARC countries

2020 ◽  
Vol 66 (No. 7) ◽  
pp. 335-344
Author(s):  
Muhammad Waqas Khalid ◽  
Ashar Sultan Kayani ◽  
Jamal Mohammed Alotaibi ◽  
Muhammad Muddassir ◽  
Bader Alhafi Alotaibi ◽  
...  
Keyword(s):  
Food Security ◽  
Regional Cooperation ◽  
Negative Impact ◽  
Positive Impact ◽  
Regional Trade ◽  
Policy Makers ◽  
Long Run ◽  
Security Challenges ◽  
Trading Partners ◽  
Trade Partners

Higher consumption and increased import requirements for the South Asian Association for Regional Cooperation (SAARC) region can be catered through neighboring trade partners if resources are optimally utilized. The purpose of this research is to analyze the connection between regional trade of SAARC countries and the food security challenges faced by the region. The study uses data from 1990–2018 for Pakistan, India, Sri Lanka, and Bangladesh to econometrically analyze the determinants of the volume of food trade. The results show that the gross domestic product of importing or exporting countries and foreign direct investment (FDI) have positive impact on regional trade. The bilateral exchange rate between trading partners has a negative impact on the trade volume. The results also showed the absence of a long-run relationship between volume of trade and food security using Johansen’s cointegration test. Our analysis suggests that policy makers should focus on the means for creating favorable environment in Pakistan and India to not only meet the increasing global demands for food but also increasing their competitiveness for high-quality and low-quality priced products in major exports markets.

Long-run purchasing power parity in the 1920s: the Greek experience

1992 ◽  
Vol 24 (12) ◽  
pp. 1301-1306 ◽  
Author(s):  
Dimitris A. Georgoutsos ◽  
Georgios P. Kouretas
Keyword(s):  
Purchasing Power Parity ◽  
Purchasing Power ◽  
Power Parity ◽  
Long Run

Income elasticity of overnight stays over seven decades

2018 ◽  
Vol 24 (8) ◽  
pp. 1015-1028 ◽  
Author(s):  
Martin Falk ◽  
Xiang Lin
Keyword(s):  
Purchasing Power Parity ◽  
Travel Demand ◽  
Income Elasticity ◽  
Power Parity ◽  
Income Elasticities ◽  
Long Run ◽  
The Stability ◽  
Overnight Stays ◽  
New Evidence ◽  
Specific Country

This article provides new evidence on the stability of the long-run income elasticity of tourism and travel demand by use of the recently developed smooth time-varying cointegration regression model. The estimations control for relative purchasing power parity of the source country and make use of a specific country dataset where domestic and foreign overnight stays are available over a longer period of time (Switzerland, 1934–2015). Results show that the income elasticity of foreign overnight stays peaks at approximately two in the early 1960s, drops to around one in the early 1980s and from then on remains stable until the end of the sample. Domestic income elasticity reaches its highest levels in the 1930s, then steadily falls towards one in the mid-1960s, and therefrom remains stable until 2015. Different phases in the tourism area life cycle might be a major explanatory factor for variation in income elasticities over time.

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