Real Exchange Rates and Commodity Prices in a Neoclassical Model

1988 ◽  
Author(s):  
Carmen Reinhart
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Commodity Prices ◽  
Neoclassical Model

Real Exchange Rates and Commodity Prices

1996 ◽  
Author(s):  
Dominique Yves Dupont ◽  
V. Hugo Juan-Ramon
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Commodity Prices

Purchasing Power Parity and the Law of One Price: Evidence from Commodity Prices in Asian Countries

2015 ◽  
Vol 15 (2) ◽  
pp. 231-240 ◽  
Author(s):  
Mohsen Bahmani-Oskooee ◽  
ABM Nasir
Keyword(s):  
Exchange Rates ◽  
Purchasing Power Parity ◽  
Real Exchange Rates ◽  
Strong Support ◽  
Commodity Prices ◽  
Law Of One Price ◽  
Purchasing Power ◽  
Power Parity ◽  
Industrial Countries ◽  
The Law

Almost all previous studies that have tested the law of one price or Purchasing Power Parity theory (PPP) have used either real effective exchange rates or bilateral real exchange rates which are constructed using CPI or PPI data. Most of these studies have failed to support the PPP mostly due to aggregation bias. A few recent studies, have, therefore used commodity prices in different countries and have provided strong support for the theory. These studies have mostly used data from industrial countries. In this paper, we use individual prices of 52 retail items from 15 cities in Asia and test for stationarity of the real exchange rate and speed of adjustment. We provide support for PPP in 63% of the cases. We also find that using individual prices lead to faster convergence of real rates toward their PPP values.

Real Exchange Rates and Commodity Prices

1996 ◽  
Vol 96 (27) ◽  
pp. 1 ◽  
Author(s):  
Dominique Yves Dupont ◽  
V. Hugo Juan-Ramon ◽  
◽  
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Commodity Prices

scholarly journals The Relative City Price Convergence in Pakistan: Empirical Evidence from Spatial GLS

2010 ◽  
Vol 49 (4II) ◽  
pp. 439-448 ◽  
Author(s):  
Hasan Muhammad Mohsin ◽  
Scott Gilbert
Keyword(s):  
Exchange Rates ◽  
Price Index ◽  
Common Knowledge ◽  
Real Exchange Rates ◽  
Consumer Price Index ◽  
Market Price ◽  
Commodity Prices ◽  
Trade Barriers ◽  
Price Convergence ◽  
Tradable Goods

It is evident from general experience that price of same good may differ considerably among countries, regions, cities in same country and even adjacent shopping malls and outlets. It is also common knowledge that stronger competitive forces and information about market price tend to ensure convergence of prices. In the presence of these forces price differentials cannot be persistent and are hence short lived. The recent literature on price convergence has focused on country studies using regional commodity prices and Consumer Price Index (CPI) data.1 The analysis of relative prices or real exchange rates between regions or cities in a country has certain advantages in estimating Purchasing Power Parity (PPP) puzzle. There are no trade barriers and non tradable goods in a single country. Krugman and Obstfeld (2007) consider transportation costs, trade barriers and goods market segmentations as obstacles to hold international Ppp.Furthermore they mention that countries have different endowments, baskets of goods and consumption weights in their inflation index. So PPP may not hold even if there are no non tradable goods and barriers. The PPP theory is related to the law of one price through arbitrage of international goods. The estimation of real exchange rates among countries shows that the convergence towards PPP is very slow.2 This study attempts to use overall Consumer Price Index (CPI) data on 35 Pakistani cities from July 2001 to June 2008 to estimate relative city price convergence with Karachi and Lahore, two numeraire cities. The case of Pakistan is interesting primarily due to the following reasons.

scholarly journals Real Exchange Rates and Primary Commodity Prices

2019 ◽  
Author(s):  
Joao Ayres ◽  
Constantino Hevia ◽  
Juan Pablo Nicolini
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Commodity Prices ◽  
Primary Commodity

scholarly journals Real exchange rates and primary commodity prices

2020 ◽  
Vol 122 ◽  
pp. 103261 ◽  
Author(s):  
Joao Ayres ◽  
Constantino Hevia ◽  
Juan Pablo Nicolini
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Commodity Prices ◽  
Primary Commodity

scholarly journals Analysis of Competitiveness and Factors Affecting Indonesia's Selected Commodity Exports to Developing Eight Countries (D-8)

2019 ◽  
pp. 119-130
Author(s):  
Sridewi Nainggolan ◽  
Tanti Novianti ◽  
Muhammad Findi Alexandi
Keyword(s):  
Panel Data ◽  
Exchange Rates ◽  
Real Exchange Rates ◽  
Commodity Prices ◽  
Factors Affecting ◽  
Trade Relations ◽  
Panel Data Regression ◽  
Potential Market ◽  
Data Regression ◽  
Trading Partners

Indonesia's exports to major trading partners show a declining trend in recent years. So that market diversification is important so that exports do not fully depend on the main trading partners. Looking at the development of Indonesia's exports to the Developing Eight Countries (D-8), this region can become a potential market to increase exports. This study aimed to analyze the competitiveness of commodities, and the factors that affect Indonesia's commodity exports to (D-8). The analysis period from 2009 to 2018 uses Revealed Comparative Advantage (RCA), Intra Industry Trade (IIT), Export Dynamic Product (EPD), and Gravity Model using panel data regression. Based on the results of RCA and EPD analysis, Indonesian commodities are able to compete and occupy a variety of positions, namely the Rising Star, Falling Star, Lost Oportunity, and Retreat positions. The IIT results show that most of Indonesia's trade relations with D-8 member countries are one-way (No Integration). Factors that influence exports are, GDP, real exchange rates, commodity prices, economic distances with different results for each commodity.

scholarly journals Real Exchange Rates and Primary Commodity Prices

2019 ◽  
Author(s):  
Constantino Hevia ◽  
Juan Pablo Nicolini
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Commodity Prices ◽  
Primary Commodity
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