scholarly journals Study of Nepal's Economic Relations with China

2016 ◽  
Vol 23 (1-2) ◽  
pp. 23-32
Author(s):  
Uma Shankar Prasad
Keyword(s):  
Purchasing Power Parity ◽  
The Political ◽  
Economic Relation ◽  
Power Parity ◽  
Economic Relations ◽  
Global Power ◽  
The Status ◽  
Us Dollar ◽  
Good Neighbor ◽  
The International Monetary Fund

Nepal has a very long historical, political, cultural and economic cooperation with China. According to the International Monetary Fund (IMF), China is the country having the world's largest economy in 2014 for purchasing power parity with 17.632 trillion US dollar and second largest economy for nominal GDP. Being one of the rising Asian powers, China wants to achieve the status of global power. In this perspective, it is needed for China to win the trust of neighboring countries. China has already announced that it will pay more attention and reinforce its cooperation with its neighbors. Being a China's good neighbor, Nepal naturally wants to see China as a global power in coming years. This article analyzes some facets of Nepal's long economic relation with China. The paper concludes that although the political and economic relation between Nepal and China has very long history, the relation has not been able to enhance various economic indicators like trade, investment, tourism etc. and therefore it is needed to focus on economic endeavors between these two countries in coming days.The Journal of Development and Administrative Studies (JODAS) Vol. 23(1-2), pp. 23-32

scholarly journals Testing the Purchasing Power Parity Hypothesis: Case of ASEAN Economies

2018 ◽  
Vol 64 (4) ◽  
pp. 74-85
Author(s):  
Jani Bekő ◽  
Darja Boršič
Keyword(s):  
Purchasing Power Parity ◽  
Data Series ◽  
Purchasing Power ◽  
Power Parity ◽  
Crisis Period ◽  
The Great Recession ◽  
Us Dollar ◽  
Asean Countries ◽  
Japanese Yen ◽  
Chinese Yuan

Abstract We examine the purchasing power parity (PPP) hypothesis of 10 members of ASEAN. A battery of panel unit root tests is employed on data series from January 1995 to January 2018 in order to search for validity of PPP in the period before the Great Recession and in the post-crisis period. All the calculations are based on four numeraire currencies: Chinese yuan (CNY), Japanese yen (JPY), US dollar (USD), and the euro (EUR). First, following the outcome of the present study for ASEAN countries, the PPP holds mostly with respect to CNY rates. Second, for the post-financial crisis period, our research proves conclusively that the PPP supposition is predominantly valid between the currencies of ASEAN countries and EUR rates. The sample of countries in the study is limited to the ASEAN group of economies. Based on the evaluated parity conditions, the emergence of global economic crisis brought about significant currency shifts in the ASEAN. The selection and testing of a broader range of numeraire currencies is vital to provide empirical underpinning for PPP notion.

Quota Formula - Data Update and Further Considerations

Policy Papers ◽  
2013 ◽  
Vol 2013 (68) ◽  
Author(s):  
Keyword(s):  
Purchasing Power Parity ◽  
Individual Member ◽  
Power Parity ◽  
Executive Board ◽  
Draft Report ◽  
Policy Paper ◽  
Board Of Governors ◽  
Individual Member Country ◽  
Data Update ◽  
The International Monetary Fund

The IMF staff has updated individual member country data for the variables used in the quota formula for the period 1999-2011; the tables also include the comparable value of each variable for the previous quota dataset, which was based on data covering the period 1998-2010. The information is presented in millions of SDRs (Table A1) and in percent of their respective global totals (Tables A2 and A3). A table showing calculated quota shares based on the quota formula is also included (Table A4). The current quota formula includes a GDP variable, which is a blend of GDP at market rates and GDP at purchasing power parity (PPP), openness, variability, and international reserves (see Box 1 in Reform of Quota and Voice in the International Monetary Fund-Draft Report of the Executive Board to the Board of Governors). Data sources and a description of the quota variables are discussed in Quota Formula – Data Update and Further Considerations - Statistical Appendix; IMF Policy Paper; June 2013. Download Quota Data: Updated IMF Quota Formula Variables - July 2013

Google Trends and Structural Exchange Rate Models for Turkish Lira–US Dollar Exchange Rate

2018 ◽  
Vol 14 (2) ◽  
Author(s):  
Levent Bulut ◽  
Can Dogan
Keyword(s):  
Exchange Rate ◽  
Random Walk ◽  
Purchasing Power Parity ◽  
Google Trends ◽  
Power Parity ◽  
Dollar Exchange Rate ◽  
Out Of Sample ◽  
Us Dollar ◽  
Exchange Rate Models ◽  
Turkish Lira

Abstract In this paper, we use Google Trends data to proxy macro fundamentals that are related to two conventional structural determination of exchange rate models: purchasing power parity model and the monetary exchange rate determination model. We assess forecasting performance of Google Trends based models against random walk null on Turkish Lira–US Dollar exchange rate for the period of January 2004 to August 2015. We offer a three-step methodology for query selection for macro fundamentals in Turkey and the US. In out-of-sample forecasting, results show better performance against no-change random walk predictions for specifications both when we use Google Trends data as the only exchange rate predictor or augment it with exchange rate fundamentals. We also find that Google Trends data has limited predictive power when used in year-on-year growth rate format.

scholarly journals Pembuktian Konsep Law Of One Price (LOOP) Dalam Absolute Purchasing Power Parity Menggunakan The Big Mac Index Antar Negara The Six Cheapest (Indonesia – Malaysia) Per Juli 2021

2021 ◽  
Vol 6 (2) ◽  
pp. 184-198
Author(s):  
Dewi Cahyani Pangestuti ◽  
R. Ferry Riantiarno
Keyword(s):  
Purchasing Power Parity ◽  
Free Market ◽  
Secondary Data ◽  
Law Of One Price ◽  
Purchasing Power ◽  
Power Parity ◽  
The Us ◽  
Us Dollar ◽  
The Absolute ◽  
Descriptive Method

This study aims to prove the existence of the absolute purchasing power parity theory using The Big Mac Index and take the example of The Six Cheapest countries, two of which are Indonesia and Malaysia. The data taken is secondary data that has been measured and processed by The Economist which contains the prices of the Big Mac units sold by each country, in The Big Mac Index is 56 countries with different incomes. The method used is a descriptive method, with the literature method technique. The results show that in the end absolute purchasing power parity will not be formed in the free market. This is stated by the non-meeting points of purchasing power parity under conditions of real consumption. Also, it is proven by the undervalued value of the rupiah and ringgit in Indonesia and Malaysia against the US dollar, as well as the level of consumption of each country that must be adjusted.

scholarly journals International Evidence On Purchasing Power Parity Theory: A Partial Equilibrium Empirical Investigation

2011 ◽  
Vol 7 (5) ◽  
Author(s):  
Bahram Adrangi ◽  
Mary Allender ◽  
Kambiz Raffiee
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Purchasing Power Parity ◽  
Fourth Quarter ◽  
Partial Equilibrium ◽  
Purchasing Power ◽  
Power Parity ◽  
Australian Dollar ◽  
Bilateral Exchange ◽  
Us Dollar

This paper tests the Purchasing Power Parity (PPP) theory in a partial equilibrium framework. Statistical tests are employed to test the PPP theory for floating exchange rates of the Australian and Canadian dollars, Swiss frank and the British pound. The study period spans the fourth quarter of 1974 through the fourth quarter of 2006. The Johansen and Juselieus test of cointegration supports a long-run relationship between inflation and exchange rate predicted by the PPP theory only for the bilateral exchange rates of the pound and the Australian dollar. This evidence suggests that the PPP in its strict theoretical sense in the case of the bilateral exchange rate of the US dollar and Australian dollar is rejected but not for the case of the exchange rate of the pound and US dollar. However, the Granger causality test further supports the findings of the cointegration test. It shows that in the short-run, the money supply and GDP ratios Granger cause the movements of this exchange rate.

scholarly journals Evaluation of institutional grounding for Russian investments to basic industries of Nepal

2020 ◽  
Vol 12 (4) ◽  
pp. 455-465
Author(s):  
Sh. Mishra ◽  
A. M. Zobov ◽  
E. A. Fedorenko
Keyword(s):  
South Asia ◽  
Political Stability ◽  
Good Choice ◽  
Diplomatic Relation ◽  
The Political ◽  
Foreign Direct Investments ◽  
Economic Relation ◽  
Economic Relations

This article is developed to understand the Russian investment in Nepal. Since these days due to the western section it is necessary for Russia to expand its economic relations to others continent and Asia is a best part to expand its investment. As there are some countries already tie with Russia in economic connection from South Asia like India, Pakistan but with Nepal and Russia had more on diplomatic relation. Thus it is very good choice to look and increase for economic relation for Russia with Nepal. The author has highlighted institution determinant of Foreign Direct Investments (FDI) to attract investment in Nepal because these days the political stability has become better in Nepal. The author also found the industries to invest in Nepal for Russia however there are some investment existed already by Russia. The author has recommended to the investors to invest in some specific industries without any hesitation as Nepal is facilitation for investment attraction and also its institution condition is becoming better.

scholarly journals PENDEKATAN KESEIMBANGAN JANGKA PANJANG NILAITUKAR MATA UANG RUPIAH TERHADAP DOLAR AMERIKA (1973-1997)

2017 ◽  
Vol 5 (2) ◽  
pp. 119
Author(s):  
Siti Aisyah Tri Rahayu
Keyword(s):  
Exchange Rates ◽  
Purchasing Power Parity ◽  
The Other ◽  
Estimation Result ◽  
Power Parity ◽  
Long Run ◽  
Result Show ◽  
Us Dollar ◽  
Relative Ppp ◽  
Almost All

The aims of this paper is to test Purchasing Power Parity for Indonesian currency to US dollar. The analysis used in this article is the long run equilibrium with cointegrated test approach.The result show that almost all variable in this model are stasionair in the first degree, but both variable s and p not cointegrated for the absolut PPP. The estimated result show that Pj=l hypothesis is not hold during 1974.4 -1998.3 period. In the other hand, cointegrated test for the variable dst and dpt in the relative PPP is cointegrated and the estimation result show that the Relative PPP and the Cochrane-orcutt model PPP is hold for Indonesia, except for the period when Indonesia had fixed exchange rates during 1974.4 -1986.3 period.

scholarly journals Dynamics of the real exchange rate in European emerging economies: Evidence from quantile regression

2020 ◽  
Vol 67 (1) ◽  
pp. 27-50
Author(s):  
Zorica Mladenovic ◽  
Sladjana Bodor
Keyword(s):  
Exchange Rate ◽  
Czech Republic ◽  
Real Exchange Rate ◽  
Purchasing Power Parity ◽  
Power Parity ◽  
The Czech Republic ◽  
Quantile Autoregression ◽  
Autoregression Model ◽  
Us Dollar ◽  
European Economies

The sustainability of purchasing power parity (PPP) theory is examined within the quantile autoregression model for the monthly data of the euro and the US dollar-based real exchange rate (RER) in selected European economies (the Czech Republic, Hungary, Poland, Romania, Serbia and Turkey). Period from January 2000 to December 2014 is covered. The application of quantile autoregression model is motivated by the necessity of identifying asymmetric behavior of the RER due to the shocks of different size and sign. The empirical results support to some extent the PPP theory for the euro- and US dollar-based RER in Romania, Serbia, and Turkey. The euro-based RER in Hungary and Poland is also identified to confirm the PPP theory. The dynamics of the RER in the Czech Republic cannot be associated with the PPP validity. The persistence of the euro-based RER is estimated to be more prominent after the depreciation shocks of smaller size.

China’s Re-emergence as a Global Power

2018 ◽  
Author(s):  
Mahesh K. Joshi ◽  
J.R. Klein
Keyword(s):  
Purchasing Power Parity ◽  
Social Impact ◽  
The United States ◽  
Power Parity ◽  
Success Stories ◽  
Global Power ◽  
World Markets ◽  
Major Shift ◽  
Opening Up ◽  
Global Growth

Over the past five decades China’s unprecedented rise is one of the rare economic success stories of a country opening up its economy to world markets. China initiated market reforms in 1978 with a major shift to a market-based economy from a centrally planned economy. The move resulted in an unprecedented economic growth and social impact. The gross domestic product (GDP) growth has averaged close to double digits for most of the time since then, and created a major economy at the fastest pace in history. It has made a major contribution to global growth since the financial crisis of 2008. In 2015, China was ranked number one in terms of GDP and purchasing power parity (PPP) at $19.8 trillion, followed by the United States at $18 trillion.

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