purchasing power parity based on effective exchange rate and cointegration 25 ldcs experience with its absolute formulation abstract with the development of cointegration technique the purchasing power parity ppp theory has received renewed attention most studies have tested the theory by using data from developed countries dcs and some high inflation less developed countries ldcs they have mostly rejected its empirical validity in this paper we use the concept of effective exchange rate and quarterly data over 1973 1988 to examine the experience of 25 ldcs for most countries we found little empirical support for the ppp

purchasing power parity in the long run a cointegration approach this paper utilizes cointegration analysis to examine purchasing power parity relationships over a long time horizon the results indicate that the exchange rate is cointegrated strongly with the wholesale price index ratio and somewhat weakly with the consumer price index ratio the cointegrating coefficient between the exchange rate and the price ratio is close to one when cointegration is confirmed the hypothesis that the real exchange rate follows a random walk is rejected in most cases finally a new test for common trends finds no such common trends in exchange rates or price ratios copyright 1990 by ohio state university press

energy consumption and gdp in developing countries a cointegrated panel analysis in this paper we re investigate the co movement and the causality relationship between energy consumption and gdp in 18 developing countries using data for the period 1975 to 2001 recently developed tests for the panel unit root heterogeneous panel cointegration and panel based error correction models are employed the empirical results provide clear support of a long run cointegration relationship after allowing for the heterogeneous country effect the long run relationship is estimated using a full modified ols the evidence shows that long run and short run causalities run from energy consumption to gdp but not vice versa this result indicates that energy conservation may harm economic growth in developing countries regardless of being transitory or permanent

national price levels purchasing power parity and cointegration a test of four high inflation economies abstract the time series properties of exchange rates and wholesale prices from four high inflation countries show some evidence in support of purchasing power parity tests for stationarity of real exchange rates and cointegration among price and exchange rate variables are presented for argentina brazil chile and israel during the 1970s and 1980s error correction models describe the mechanism of adjustment to long run equilibrium

determinants of international trade flows this paper models and estimates import demand and demand for export functions for 19 industrial countries although primary emphasis is placed on the period of generalized floating exchange rates 1972 through 1980 estimates are also provided for the fixed exchange rate years 1957 1970 thus making possible a comparison between the two eras aside from the conventional income and price variables the paper assesses the effect of variations in the exchange rate and in the expected exchange rate on real trade flows additionally it estimates an unrestricted lag structure of the effect of price and exchange rate variations on imports

the collapse of purchasing power parities during the 1970 s one of the striking facts concerning the relationship beiveen prices and exchange rates during the 1970 s has been the dismal performance of the predictions of the simple versions of the purchasing power parity doctrine ppp that doctrine in its absolute version states that the equilibrium exchange rate between domestic and foreign currencies equals the ratio of domestic to foreign price levels the relative version of the doctrine relates equilibrium changes in exchange rates to changes in the ratio of domestic to foreign prices during the 1970 s short run changes in exchange rates bore little relationship to short run differentials in national inflation rates and frequently divergences from purchasing power parities have been cumulative this paper reviews and analyzes the empirical record of exchange rates and prices during the 1970 s and the analysis is based on the experience of the dollar pound the dollar frecch franc and the dollar dm exchange rates section 2 presents the evidence on ppp during the 1970 s and contrasts it with the evidence from the 1920 s a period during which the doctrine held up reasonably well this analysis is relevant for assessing whether the flexible exchange rate system was successful in providing national economies with an added degree of insulation from foreign shocks and whether it provided policymakers with an added instrument for the conduct of macroeconomic policy the evidence regarding devia tions from purchasing power parities is also relevant for determining whether there is a case for managed float section 3 attempts to explain what went wrong with

long memory and mean reversion in real exchange rates in latin america this article examines the long run purchasing power parity ppp hypothesis for 12 latin american real effective exchange rates reers using fractional integration techniques the empirical result

testing for long run purchasing power parity a time series analysis for the greek drachma abstract long run purchasing power parity ppp for six drachma bilateral exchange rates is tested by means of unit root and cointegration tests the results reject long run ppp

what can we learn from a large border effect in developing countries abstract failure of the law of one price lop in the short run is an empirical regularity recent research using disaggregated price data for different cities across an international boundary has shown that the variation of the prices in equidistant cities located in two different countries is systematically larger than that for the cities within the same country nontariff barriers and exchange rate variability are cited as the proximate causes of this systematic difference in consumer price variability results using data from developing countries with large nontariff barriers and more volatile exchange rate suggest that those claims are overemphasized

2012 international year for sustainable energy for all african frontrunnership in rural electrification abstract 2012 has been declared the international year for sustainable energy for all by the un while africa remains the most underpowered continent the prognosis for a brighter future is looking good as key stakeholders governments private sector civil society and the donor community have mobilized at an unprecedented scale to experiment with new policies regulatory frameworks and business models to rapidly upscale access to sustainable energy the top down central grid expansion approach to increasing electricity access is very capital intensive and yet has gained considerable momentum at the expense of lower cost options that utilize decentralized off grid solutions a decentralized bottom up approach could also use indigenous renewable energy sources and foster more significant linkages with livelihood opportunities in the rural un served territories this paper evaluates the emerging experiments through the lenses of c k prahalad s bottom of the pyramid theory and clayton christensen s disruptive technologies perspective three front runner initiatives involving new business models innovative technologies and institutional capacity building will be analyzed in addition the paper examines a regulatory policy initiative designed to stimulate clean energy investments in ghana though the examples are all from ghana they illustrate general challenges to sub saharan africa as a whole

determinants of international trade flows the case of developing countries abstract the question of magnitude and the time path of the trade flows to changes in the exchange rates and to changes in the price level is of emitent practical importance to assess the above proposition a distributed lag structure is imposed on the relative prices and on the effective exchange rate as the determinants of trade flows then import and export demand functions are estimated for a sample of developing countries using the almon procedure the empirical findings appeared to sustain orcutt s early conjecture that trade flows adjust differently to different price stimuli more precisely it was found that imports and exports reactions were quicker and the total response time was shorter when an exchange rate rather than relative prices caused a change in international prices

purchasing power parity in less developed and transition economies a review paper abstract the concept of purchasing power parity ppp has been the subject of numerous studies many of which have been unable to prove conclusively this core principle of international finance although industrialized countries have received most of the attention studies that focus on less developed and transition economies have also attained mixed results this study surveys trends in this branch of the literature highlighting the econometric advances that have sought to solve this puzzle while pointing out that more needs to be done to address the reasons that might cause ppp not to hold

waste management policies for industrial symbiosis development case studies in european countries industrial symbiosis is emerged as a self organizing business strategy among firms that are willing to cooperate to improve their economic and environmental performance the adoption of such cooperative strategies relates to increasing costs of waste management most of which are driven by policy and legislative requirements development of is depends on an enabling context of social informational technological economical and political factors the power to influence this context varies among the agents involved such as the government businesses or coordinating entities governmental intervention as manifested through policies could influence a wider range of factors and we believe this is an area which is under researched this paper aims to critically appraise the waste policy interventions from supra national to sub national levels of government a case study methodology has been applied to four european countries i e denmark the uk portugal and switzerland in which is emerged or is being fostered the findings suggest that there are commonalities in policy instruments that may have led to an is enabling context the paper concludes with lessons learnt and recommendations on shaping the policy context for is development

purchasing power parity in the long run a test of the dollar pound exchange rate 1890 1978 this paper tests the purchasing power parity ppp hypothesis by analyzing t he long run tendency of the dollar pound exchange rate using data sin ce 1890 two different models are considered 1 a na ive model and 2 a modified monetary model the conditions of propor tionality and symmetry cannot be rejected when using the naive model the final results using the monetary model however indicate that t he existence of permanent deviations from ppp cannot be ruled out copyright 1987 by ohio state university press

comparing the vulnerability of different coal industrial symbiosis networks under economic fluctuations we establish a vulnerability analytical framework of cisn and illustrate the impact path of economic fluctuation on cisn performance based on this we propose an improved cascading failure model with directed weighted network and design five network performance indicators i e relative value of cascading failure average path length relative value of maximal connected sub graphs network efficiency and structure entropy taking three coal eco industrial parks in china as cases we simulate and compare the impacts on cisn vulnerability i e equality based dependent based and nested based cisns of economic fluctuation the results indicate that the interaction between economic fluctuation and network structure is the key factor in determining system vulnerability concerning overall vulnerability equality based cisn is highest dependent based cisn is next and nested based cisn is lowest regarding disturbance type the changes in the five performance indicators of the three types of cisn are more intense under energy price shocks than with declining demand moreover the cascading failure scale of equality based cisn is greatest with declining demand while the other two kinds of cisn s is greatest under energy price shocks concerning disturbance intensity equality based cisn shows initial value sensitivity to economic fluctuation and nested based cisn has the strongest tolerances for economic fluctuation from the network performance perspective the performance of nested based cisn is superior to that of dependent based and equality based cisns due to longer average path length and lower network efficiency the failure diffusion trend of equality based cisn shows the curve of type s and the diffusion rate is smooth and slow contrariwise the initial diffusion rate of dependent based cisn is the highest indicating that the loss of system efficiency can somewhat improve the system s anti risk ability

analysis of the energy access improvement and its socio economic impacts in rural areas of developing countries abstract access to modern energy is one of the most basic requirements for development in rural areas of developing countries there are a large number of people who do not have access to lpg and depend on traditional biomass such as wood crop and dung for cooking in addition energy has numerous and complex links with poverty reduction therefore it is important to estimate the impacts of energy access improvement on socio economic situation in the rural areas of developing countries quantitatively this study focuses on socio economic impacts of cooking demand through changes in stoves adopted by the rural households we have developed an energy economic model of rural areas in india to analyze the links between energy income and health hazard applying both opportunity cost for using fuelwood and exposure to resipirable suspended particulate matter rspm as a result of the analysis there is a positive relation between the opportunity cost and the average rspm exposure of women in the rural areas following to increase in the opportunity cost that is income the cost of an improved wood stove becomes relatively lower first than that of a traditional wood stove and then a gas stove attains price competitiveness it is achieved that the average rspm exposure is below the who and japanese criteria for suspended particulate matter spm 190 and 100 g m3 at the opportunity cost of us 9 and 15 gj respectively

understanding the political economy and key drivers of energy access in addressing national energy access priorities and policies abstract globally 1 5 billion people lack access to electricity and nearly 3 billion lack access to modern cooking energy options of the world s energy poor 95 are in asia and sub saharan africa within asia almost 80 of electricity deprived and 86 of biomass dependent populations are in the big 5 countries bangladesh china india indonesia and pakistan in this paper we discuss the broad contours of the political economy of energy access in these countries the political economy is assessed through an examination of three sustainability objectives accessibility of physical infrastructure energy service delivery and conformance to social goals the key areas of concern include emphasis on supply driven grid electricity vested power dynamics favouring affluent and urban areas unreliability of energy service provision and misdirected and misappropriated subsidies the above mentioned issues are responsible for limiting accelerated achievement of universal energy access in the big 5 countries and need to be addressed through innovative approaches the paper emphasizes the need for firm commitments policy convergence and the implementation of pro poor equitable energy policies through a broad based energy framework of bench marked technology neutral energy provisioning that ensures reliability and equity it highlights the need for reorienting of the subsidy regime and incorporating energy service delivery indicators in monitoring and reporting mechanisms

analyzing manufacturers impact on green products market diffusion the case of electric vehicles abstract electric vehicles are often seen as a promising way for rationalizing the use of fossil energy in the automotive sector so far however their market success and thus their impact on reducing fossil fuel consumption are rather limited in this article the automotive market simulator amasi is applied to analyze the leverage of manufacturers to support the market diffusion of electric vehicles this is done by parameterizing the model for the german car market and simulating different product portfolio options regarding the timing of the introduction and the elimination of vehicle models an aggregated industry as well as an individual manufacturer s perspective is taken into account the results indicate that manufacturers portfolio decisions have a strong influence on the market development of electric vehicles and can be used to gain a competitive advantage thus manufacturers should proactively strive to shape the electric vehicle market instead of adopting a waiting position for policymakers these findings imply that instruments to steer manufacturers behavior are just as important as those targeted at consumers the paper broadens the discussion on the levers for the market diffusion of electric vehicles by providing a simulator to analyze manufacturers portfolio decisions in a competitive setting and by illustrating the necessity to include portfolio decisions when designing mechanisms to foster the market diffusion of electric vehicles

is there a long run relation between the trade balance and the real effective exchange rate of ldcs abstract using quarterly data over 1973 1988 period the cointegration analysis is used and it is shown that the trade balance and the real effective exchange rate of some ldcs are cointegrated in the long run this approach is argued to be a close substitute for testing the marshall lerner condition

paridad del poder adquisitivo en el tipo de cambio argentino peso dolar espanolel presente trabajo implementa el modelo de determinacion del tipo de cambio conocido como paridad del poder adquisitivo ppa para el caso de argentina tomando como patron el tipo de cambio con el dolar estadounidense se analiza dicha hipotesis testeando datos anuales que van desde 1948 a 2006 se utiliza un modelo bivariado y otro trivariado de cointegracion aplicando ademas un mecanismo de correccion de errores a fin de estimar la velocidad de ajuste hacia la ppa se ha encontrado evidencia favorable de cointegracion y verificamos el cumplimiento de la ppa en su version absoluta se ha constatado ademas que la velocidad de ajuste media es de alrededor de 3 anos englishthe article develops for the argentine case the model of the determination of the exchange rate known as purchasing power parity ppp adopting as reference the exchange rate with the us dollar the ppp hypothesis is analyzed utilizing annual data from 1948 through 2006 a bivariate and trivariate model of cointegration is employed and an error correction mechanism is used in order to estimate the adjustment velocity towards ppp positive evidence is found favorable to cointegration and we verify the ppp hypothesis in its absolute version moreover we note that the average velocity of adjustment is around 3 years

what moves and works broadening the consideration of energy poverty greater detail on the specific technological and planning challenges facing energy deprived developing economies is required to improve energy policy making and development assistance practice the current literature tends to highlight electricity services and to a lesser extent clean cooking this article calls for a closer look at mobility and mechanical power as essential energy services in addition to a refinement of the specific institutional arrangements needed to reduce energy poverty and deprivation this article augments and refines arguments made by morgan bazilian and his colleagues in their viewpoint more heat and light

evolution model with time lag effects for the coal industrial symbiosis system a case study of ordos china abstract industrial metabolism and symbiotic coupling has become the base paradigm of green low carbon development of coal mining in the coal industrial symbiosis system ciss stability is increasingly fragile because of its unique industrial links and growth environment referring to the classic lotka volterra population ecology model and synthesizing the periodicity and time lag effects of industrial development two entirely novel and more generalized ciss evolution models with time lag effects in the competitive and reciprocal scenarios are constructed respectively moreover the conditions of ciss stability are proven and discussed through mathematical analysis simulation and theorem validation were carried out by taking the largest chinese coal city ordos as the research object the main results are as follows first the time lag effect is an important factor leading to ciss instability the shorter the time lag within the ciss the better the collaboration between industries and the easier it is that the ciss will achieve a stable ecological balance second when the power of competition dominates the development of industries within ciss will be inhibited when the power of cooperation dominates the evolution of ciss will toward a positive direction third a certain degree of self inhibition will contribute to the stable development of the industrial symbiosis system at last the social service industry not only can boost the industrial diversity within ciss but also can promote the co evolution of original and exogenous industries which plays a positive role in the healthy and stable development of ciss

the electricity consumption and economic growth nexus evidence from greece abstract this paper attempts to cast light into the relationship between electricity consumption and economic growth in greece in a multivariate framework for this purpose we used cointegration techniques and the vector error correction model in order to capture short run and long run dynamics over the sample period 1970 2011 the empirical results reveal that in the long run electricity demand appears to be price inelastic and income elastic while in the short run the relevant elasticities are below unity we also argue that the causal relationship between electricity consumption and economic growth in greece is bi directional our results strengthen the notion that greece is an energy dependent country and well directed energy conservation policies could even boost economic growth furthermore the implementation of renewable energy sources should provide significant benefits ensuring sufficient security of supply in the greek energy system this evidence can provide a new basis for discussion on the appropriate design and implementation of environmental and energy policies for greece and other medium sized economies with similar characteristics

cointegration and tests of purchasing power parity nonstationarity in the levels of spot exchange rates and domestic and foreign price indices makes the use of conventional tests of the absolute version of purchasing power parity ppp inappropriate if ppp is true inter country commodity arbitrage ensures that deviations from a linear combination of spot exchange rates and domestic and foreign price levels should be stationary under these conditions exchange rates and price levels should form a cointegrated system we find the null hypothesis of no cointegration cannot be rejected for all five countries thus violating the long run absolute version of ppp

cointegration tests of purchasing power parity in africa abstract despite two decades of implementing economic reforms there is still a significant gap between official and black market exchange rates in africa african policy makers continue to implement exchange rate policies based largely on the assumption that purchasing power parity ppp holds this paper examines whether there is empirical support for ppp in africa we used johansen s cointegration technique and error correction modeling on annual data for black market exchange rates and cpi in 30 countries covering 1960 97 we found strong support for the ppp doctrine as a useful guide for exchange rate policy reform in africa

toward a research agenda for policy intervention and facilitation to enhance industrial symbiosis based on a comprehensive literature review the normative question what role should governmental policy play to facilitate the development of industrial symbiosis has received considerable attention of researchers however for several reasons the effects of governmental policy actions on industrial symbiosis are still not clear this article proposes a research agenda to clarify the mechanisms of policy intervention and facilitation of industrial symbiosis based on a comprehensive review of industrial symbiosis literature focusing on how policy is conceptualized and studied the results show that existing research lacks an explicit definition of policy and employs a static conceptualization of policy that is reinforced by comparative statics research methods we argue that a dynamic process perspective is crucial to reveal the actual mechanisms through which policy intervention and facilitation affect the evolution of industrial symbiosis building on this view industrial symbiosis research is connected with insights from policy sciences and the case of policy translation of circular economy and eco industrial park in china is investigated in order to illustrate that policy is at heart a dynamic process we conclude with a research agenda proposing that the key to reveal the mechanisms is to identify the sequence of events connecting policy process and industrial symbiosis practices

financial integration of east asian economies evidence from real interest parity in this article we investigate the financial linkages between the east asian economies with japan and the united states we test for long run real interest rate parity rip using an array of panel data techniques including recent techniques developed by breuer et al 2002 and carrion i silvestre et al 2005 this study offers two important results first the failure to account for structural breaks in the industrialized countries and asian emerging economies is likely to provide evidence of nonstationary series that are stationary second we found strong evidence that the parity condition holds in all the asian countries the failure of earlier studies to confirm mean reversion of real interest rate differential rid may reflect the choice of estimation testing procedure rather than any inherent deficiency in the rip

policy framework on energy access and key development indicators ecowas interventions and the case of ghana abstract energy has become the main driver for development as industries grow agricultural sectors become more modernized economies boom and countries become wealthy there are still vast majority of people living under the poverty line especially in the ecowas region the purpose of this study is to explore how improvements in energy access can be a key driver in economic development and progress in the ecowas region data for the study was obtained from the database of the world bank a regression analysis was carried out to establish the relationships between energy access and development indicators the paper suggests the need for policy makers in the ecowas region to focus on targets such as household access consumption of electricity and ease of use instead on supply targets that focus merely on physical coverage a case on how ghana is improving energy access is presented

an empirical examination of long run purchasing power parity using cointegration techniques this paper presents an empirical analysis of long run purchasing power parity ppp for five major exchange rates using recently developed econometric techniques on the cointegration of economic time series our empirical results are extremely unfavourable to the ppp hypothesis as a long run equilibrium condition even with an allowance made for measurement error and or tranportation costs in particular we are unable to reject the hypothesis of non cointegration of the exchange rate and relative prices for any of the countries concerned far from finding a stable long run proportionality between exchange rates and relative prices our results therefore suggest that they tend to drift apart without bound