Government spending, the exchange rate and growth: empirical evidence for Latin America

Cruz, Moritz; Zavaleta, Josué

doi:10.1590/0101-31572021-3030

Cited by 2 publications

(1 citation statement)

References 26 publications

(24 reference statements)

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“…Ref. [15] analyzed the impact of disaggregated government spending in Latin American countries. Their results showed that government consumption depreciated the real exchange rate in contrast to government investment, which appreciated the real exchange rate.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of a Sustainable Economic Development Focus on the Real Exchange Rate in Saudi Arabia

Alabdulwahab

2023

Sustainability

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Saudi Arabia has launched its vision for the next decade, which is branded Vision 2030. Sustainable economic development is the core of the Saudi Vision 2030, which has seventeen sustainability programs covering a wide range of Saudi economic sectors. The aim of this study was to examine the impact of the sustainable economic development focus on the real exchange rate in Saudi Arabia. The ARDL cointegration method was used to assess the existence of the long-run relationships among the variables. The Sustainable Development Index (SDI) was used as a measure of sustainable economic development. Sustainable economic development was found to have a negative impact on the real exchange rate in terms of both the long- and short-run dynamics. Moreover, the GDP was found to have a positive impact on the real exchange rate in the long run and to have the highest coefficient of the model. However, the money supply was found to have no impact on the real exchange rate, while oil rent was found to have a negative impact on the real exchange rate in terms of both the long-run and the first-moment short-run dynamics. Government expenditure was found to be insignificant in the long run and to have a positive significant impact on the real exchange rate in the short-run dynamics. Furthermore, the sustainability impact on the real exchange rate in Saudi Arabia has not been discussed due to the economic structure that relies on oil and the change toward a sustainable economy that occurred in the recent decade. The results provide insight into the potential future challenges faced by the Saudi economy as sustainability programs progress in Saudi Arabia.

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Section: Literature Reviewmentioning

confidence: 99%