Abstract
IN ECONOMIC COST BENEFIT ANALYSIS there is a need to choose a numeraire in which all costs and benefits are evaluated. In recent years the most common practice has been to express all costs and benefits in terms of domestic currency at the domestic price level. When this numeraire is chosen it is necessary to adjust all transactions that are made with international traded goods and involve foreign exchange to account for the divergence that arise between the financial cost of foreign exchange and its economic value. 1 The purpose of this paper is to develop an analytical framework that will enable us to estimate the economic cost of foreign exchange for South Africa. Since the demand for imported goods is generally distorted by import tariffs and non-tariff barriers (as is the supply of exports by
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
