scholarly journals The Effects of Real Exchange Rates and Income on International Tourism Demand for the USA from Some European Union Countries

Economies ◽  
2017 ◽  
Vol 5 (4) ◽  
pp. 51 ◽  
Author(s):  
Serdar Ongan ◽  
Cem Işik ◽  
Dilek Özdemir
Keyword(s):  
European Union ◽  
Exchange Rates ◽  
Real Exchange Rates ◽  
International Tourism ◽  
Tourism Demand ◽  
European Union Countries ◽  
The Usa

scholarly journals European Monetary Union: a cointegration analysis

2021 ◽  
Author(s):  
Alfred A Haug ◽  
Leo Michelis
Keyword(s):  
European Union ◽  
Exchange Rates ◽  
Interest Rates ◽  
Monetary Union ◽  
Real Exchange Rates ◽  
Cointegration Analysis ◽  
Budget Deficits ◽  
The European Union ◽  
Convergence Criteria ◽  
European Union Countries

This paper employs systems-based cointegration techniques developed by [Reference to Johansen] and [Reference to Johansen] to determine which European Union countries would form a successful Economic and Monetary Union (EMU), based on long-run behavior of the nominal convergence criteria laid down in the Maastricht treaty. The original 12 European Union countries are analyzed together. Nominal exchange rates, real exchange rates, long-term interest rates, and government budget deficits are each analyzed for co-movements among the 12 countries and various subgroups of them. The results suggest that not all of the 12 original countries of the European Union can form a successful EMU over time, unless several countries make significant adjustments.

scholarly journals European Monetary Union: a cointegration analysis

2021 ◽  
Author(s):  
Alfred A Haug ◽  
Leo Michelis
Keyword(s):  
European Union ◽  
Exchange Rates ◽  
Interest Rates ◽  
Monetary Union ◽  
Real Exchange Rates ◽  
Cointegration Analysis ◽  
Budget Deficits ◽  
The European Union ◽  
Convergence Criteria ◽  
European Union Countries

This paper employs systems-based cointegration techniques developed by [Reference to Johansen] and [Reference to Johansen] to determine which European Union countries would form a successful Economic and Monetary Union (EMU), based on long-run behavior of the nominal convergence criteria laid down in the Maastricht treaty. The original 12 European Union countries are analyzed together. Nominal exchange rates, real exchange rates, long-term interest rates, and government budget deficits are each analyzed for co-movements among the 12 countries and various subgroups of them. The results suggest that not all of the 12 original countries of the European Union can form a successful EMU over time, unless several countries make significant adjustments.

scholarly journals Economic Restrictions and Currency Performance: Evidence of African Countries

2021 ◽  
Author(s):  
Alex Adegboye ◽  
Ochei Ikpefan ◽  
Adebusola Oyegoke ◽  
Stephen OJEKA ◽  
Ibukunoluwa Adeyanju
Keyword(s):  
United States ◽  
European Union ◽  
Exchange Rates ◽  
Policy Implication ◽  
Real Exchange Rates ◽  
The United States ◽  
African Countries ◽  
Regression Approach ◽  
Effect Regression ◽  
The Impact

Abstract This study explores the impact of diverse economic restrictions on currency performance. We assess a panel dataset of 30 African countries for the period 1990–2010. Our empirical evidence is based on the fixed effect regression and the Quantile regression approach. We find that the United States, European Union, economic and intensity sanctions weaken the real exchange rates. However, we establish that the U.N. sanctions are insignificant. As for the policy implication, sanctioned countries should implement a policy that could mitigate the adverse consequences of economic restrictions on currency performance.

scholarly journals Is the productivity premium of internationalized firms technology-driven?

2020 ◽  
Author(s):  
Michele Battisti ◽  
Filippo Belloc ◽  
Massimo Del Gatto
Keyword(s):  
European Union ◽  
Direct Investment ◽  
Import Competition ◽  
Specific Production ◽  
Detailed Data ◽  
Factor Productivity ◽  
Technology Gaps ◽  
European Union Countries ◽  
The Usa ◽  
The Uk

Abstract We ask whether the productivity advantage of internationalized firms documented by the international trade literature can be interpreted most accurately in terms of proximity to the “technological frontier”. We answer in the affirmative using a methodology (based on mixture models) of unbundling technology and total factor productivity (TFP) by estimating “technology-specific” production function parameters. Exploiting detailed data provided by the EFIGE database (a sample of firms distributed across Austria, France, Germany, Hungary, Italy, Spain, and the UK), we find technology gaps (with respect to the frontier) more than three times larger than the TFP gaps on average. We also find sizable technology advantages for firms undertaking foreign direct investment and/or exporting to other European Union countries or to China, for importers of materials, and for firms with competitors in China and the USA. Medium and large firms feature a higher technology premium, which is even higher for firms operating in country-sectors that are more exposed to import competition from China. Younger firms use better technologies but less effectively.

The volatility of tourism demand and real effective exchange rates: a disaggregated analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laron Delano Alleyne ◽  
Onoh-Obasi Okey ◽  
Winston Moore
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Exchange Rate Volatility ◽  
Real Effective Exchange Rate ◽  
Tourism Demand ◽  
Content Type ◽  
Effective Exchange ◽  
The Usa ◽  
Effective Exchange Rate ◽  
The Impact

Purpose One of the main factors that can impact the cost of holidays to a particular destination is the exchange rate; exchange rate fluctuations impact the overall price of the holiday and should be expected to effect tourism demand. This paper aims to scrutinize the volatility of the real effective exchange rate between the source market relative to the holiday destination and tourism demand volatility, where the influence of disaggregated data is noted. Design/methodology/approach The study uses multivariate conditional volatility regressions to simulate the time-varying conditional variances of international visitor demand and exchange rates for the relatively mature Caribbean tourist destination of Barbados. Data on the country’s main source markets, the UK, the USA and Canada is used, where the decision to disaggregate the analysis by market allows the authors to contribute to policymaking, particularly the future of tourism marketing. Findings The volatility models used in the paper suggests that shocks to total arrivals, as well as the USA and UK markets tend to die out relatively quickly. Asymmetric effects were observed for total arrivals, mainly due to the combination of the different source markets and potential evidence of Butler’s (1980) concept of a tourist area’s cycle of growth. The results also highlight the significance of using disaggregated tourism demand models to simulate volatility, as aggregated models do not adequately capture source market specific shocks, due to the potential model misspecification. Exchange rate volatility is postulated to have resulted in the greater utilization of packaged tours in some markets, while the effects of the market’s online presence moderates the impact of exchange rate volatility on tourist arrivals. Markets should also explore the potential of attracting higher numbers of older tourist, as this group may have higher disposable incomes, thereby mitigating the influence of exchange rate volatility. Research limitations/implications Some of the explanatory variables were not available on a high enough frequency and proxies had to be used. However, the approach used was consistent with other papers in the literature. Practical implications The results from the paper suggest that the effects of exchange rate volatility in key source markets were offset by non-price factors in some markets and the existence of the exchange rate peg in others. In particular, the online presence of the destination was one of those non-price factors highlighted as being important. Originality/value In most theoretical models of tourism demand, disaggregation is not normally considered a significant aspect of the model. This paper contributes to the literature by investigating the impact real effective exchange rate volatility has on tourism demand at a disaggregated source country level. The approach highlights the importance of modeling tourism demand at a disaggregated level and provides important perspective from a mature small island destination.

scholarly journals Understanding European Real Exchange Rates

2005 ◽  
Vol 95 (3) ◽  
pp. 724-738 ◽  
Author(s):  
Mario J Crucini ◽  
Chris I Telmer ◽  
Marios Zachariadis
Keyword(s):  
European Union ◽  
Exchange Rates ◽  
Price Dispersion ◽  
Real Exchange Rates ◽  
Value Added ◽  
Law Of One Price ◽  
Value Added Tax ◽  
Cross Sectional ◽  
Eu Countries ◽  
Goods And Services

We study good-by-good deviations from the Law-of-One-Price (LOP) for over 1,800 retail goods and services between all European Union (EU) countries for the years 1975, 1980, 1985, and 1990. We find that for each of these years, after we control for differences in income and value-added tax (VAT) rates, there are roughly as many overpriced goods as there are underpriced goods between any two EU countries. We also find that good-by-good measures of cross-sectional price dispersion are negatively related to the tradeability of the good, and positively related to the share of non-traded inputs required to produce the good. We argue that these observations are consistent with a model in which retail goods are produced by combining a traded input with a non-traded input.

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