Purchasing Power Parity Research Articles

Self-reported drink driving, enforcement, crashes, and crash reporting: A 6-country comparison

Objective The objective of this study was to compare drink driving and related road safety issues in 2 urban areas of 6 countries and develop an equation for estimating the rate of crash underreporting to the police in urban areas of countries that lack this information. Methods This study is a secondary analysis of 1 to 2 waves of surveys in pairs of matched medium-sized cities in Belgium, Brazil, China, Mexico, South Africa, and Ohio, United States; the surveys supported evaluation of local alcohol harm reduction efforts. Data were from 2017 to 2019 except 2023 for Mexico. Mailed surveys in Ohio and household interviews elsewhere of quota samples matched to census data yielded 23,240 completed interviews. Relevant questions covered drinking, driving under the influence of alcohol (DUI), DUI enforcement, and, except in South Africa, road crashes. GLM regression provided an equation for estimating police reporting rates of urban injury and no-injury crashes from a country’s purchasing-power parity–adjusted gross domestic product (GDP) per capita. Results The percentage of drivers driving unlicensed was 30% in Mexico and South Africa, 15% in Brazil, 8% in China, and <1% elsewhere. Among adults who both drove and drank, self-reported urban DUI rates ranged from 12% in China to 53% in South Africa, with 4 countries between 18% and 26%. Among those reporting DUI, the percentage stopped by police for doing so was 14% in Belgium, 15% in Brazil, 25% in China, 31% in Mexico, 45% in South Africa, and only 3% in Ohio. The surveys yielded data on 380 urban crashes. Past-year crash involvement was 2% to 3% in Belgium and China and 5% to 6% elsewhere. The 10% injury rate in Ohio crashes was significantly below the 24% to 35% rates elsewhere. Injury crashes were almost universally reported except in Brazil (60% reported). Only 49% to 56% of non-injury crashes were reported, except in Ohio (73%). Perceived alcohol-involved crash rates of 18% to 19% in Belgium and Ohio were significantly lower than the 32% reported in Brazil, 41% in China, and 57% in Mexico. In the regression, GDP per capita and injury involvement were positively associated with police crash reporting. Conclusions Our equation more closely approximates urban police crash reporting rates than prior studies that assumed that they matched U.S. data. DUI enforcement is weak/ineffective in urban Ohio. With suggested adjustments, our survey questions should be usable in other international road safety and DUI studies.

Oral aripiprazole in the treatment of tic disorders in China: a cost-effectiveness analysis based on a mapping algorithm derived from a Chinese children and adolescents population

BackgroundOral aripiprazole exhibits favorable clinical efficacy and safety in the suppression of tics in children and adolescents with tic disorders. This study aims to evaluate and compare the cost-effectiveness of high-dose and low-dose aripiprazole in children and adolescents with tic disorders from the perspective of the Chinese healthcare system.MethodsA questionnaire survey was conducted on 146 patients with tic disorders, of whom 144 completed EQ-5D-Y and YGTSS. Four models were built to convert YGTSS onto EQ-5D-Y utility using two mapping algorithms. We constructed a decision tree model containing efficacy and safety to compare the cost-effectiveness of high-dose and low-dose aripiprazole based on our mapping function.ResultsThe GLM with model 1 (YGTSS total tic scores) was selected as the preferred function in our decision tree model. The base case cost-effectiveness analysis showed that compared to low-dose aripiprazole, high-dose aripiprazole improves effectiveness by 0.001QALYs and increases the overall cost by $197.99, resulting in an ICER of $174339.22 per QALY, which exceeds three times the gross domestic product per capita. Hence, high-dose aripiprazole is not likely to be a cost-effective option for child patients with tic disorders. One-way sensitivity analysis and probabilistic sensitivity analysis showed that these results is robust.ConclusionOn the basis of currently available data, low-dose aripiprazole may be a safe, effective, and economical dosage for children and adolescents with tic disorders.LimitationsThe main limitation of our study is the lack of utility directly used for cost-effectiveness analysis. We obtained the utility of patients with tic disorders indirectly by the mapping function. This may introduce some bias and uncertainty. And it is a limitation to use the direct medical costs of Germany in our model. Although we converted it to the equivalent value of China using purchasing power parities, caution should be exercised when interpreting the results of this study.

Impact of Allergic Rhinitis Control on Work Productivity and Costs: A Real-World Data MASK-air Study

BackgroundAllergic rhinitis (AR) has a substantial socioeconomic impact associated with impaired work productivity. ObjectiveTo study the impact of AR on work productivity and estimate the corresponding indirect costs for 40 countries. MethodsWe conducted a cross-sectional study using direct patient data from the MASK-air® app on users with self-reported AR. We used the Work Productivity and Activity Impairment Questionnaire: Allergy Specific to measure the impact of AR on work productivity (presenteeism and absenteeism). Weekly indirect costs were estimated per country, for each level of rhinitis control and considering patients with and without asthma. ResultsWe assessed data from 677 weeks (364 patients), 280 of which were reported by patients with asthma. Regarding presenteeism, the median impact of AR in weeks of poor disease control was 60.7% (P25-P75=24.9-74.2%), while partial and good disease control were respectively associated with an impact of 25.0% (P25-P75=12.1-42.4%) and 4.4% (P25-75=0.8-12.9%). In poorly-controlled weeks, presenteeism was associated with indirect costs ranging from 65.7 US Dollars purchase power parity (US$ PPPs) (P25-P75=29.2-143.2) in Brazil to 693.6 US$ PPP (P25-P75=405.2-1094.9) in Iceland. Median absenteeism per week was of 0% for all levels of rhinitis control. Patients with AR+asthma showed higher overall work impairment than patients with AR alone, particularly in poorly-controlled weeks (median work impairment in AR alone=39.1% [P25-P75=12.5-71.9%]; median work impairment in AR+asthma=68.4% [P25-P75=54.6-80.2%]). ConclusionPoor AR control was associated with decreased work productivity and increased indirect costs, particularly in patients with AR+asthma. The estimates from this study underpin the economic burden of AR.

A Study of Components of a Development of Emerging New Businesses Along with Start-up Ecosystem &amp; Different Challenges Faced by Startup during the Development Process

Abstract India has gained global attention as a leading country that has seen significant development in the establishment of new businesses, positioning itself as a prominent center for start-ups. The birth and growth of a new businesses are impacted by several components, such as the demand for a new firm, the fundamental concept, location &amp; events, finance sources, education &amp; skills, employees &amp; others. The Indian economy is widely recognized as the fifth biggest in the world when measured by gross domestic product, or the third largest when measured by purchasing power parity. The significance of start-ups in fostering this economy cannot be neglected since they contribute to the upward path of the nation’s economy. This study paper explores the various components involved in the creation of new businesses &amp; their requirement in the process of the development of a start-up ecosystem. It also focus on the many obstacles &amp; challenges that start-ups encounter throughout the development phase.

A Corporate Managerial Framework for Collaboration Skills Training of Employees From Formerly Oppressed Communities

It is widely recognized that countries scoring high in capitalism, democracy, and the rule of law (CDR) tend to have impressive levels of real per capita gross domestic product (GDP) adjusted for purchasing power parity (GDPppp). However, the key to the rule of law is collaboration, and the ability to work together may have been eroded in communities that have experienced past traumas such as forced labor, excessive discrimination and exposure to harmful chemicals. These distressing outcomes can be inherited by future generations through negative epigenetic transgenerational psycho-sequela, leading to poor academic and employment performance, low income, self-harm, negative community relations, and increased aggression. This paper aims to explore the development of a managerial framework for rehabilitating psychological health that aims to revive lost collaboration skills. The originality of this work lies in the managerial framework that facilitates the restoration of collaboration skills, which are fundamental to exceptional economic growth and higher average income countrywide.

The contribution of animal antibiotic use to antibiotic resistance in human infections: Panel evidence from Denmark

Antibiotic use (ABU) in animals is postulated to be a major contributor to selection of antibiotic resistance (ABR) which subsequently causes infections in human populations. However, there are few quantifications of the size of this association. Denmark, as a country with high levels of pig production and strong ABR surveillance data, is an ideal case study for exploring this association.This study compiles a dataset on ABU across several animal species and antibiotic classes, and data on the rate of antibiotic resistance (ABR) in humans across key pathogens, in Denmark over time (2010−2020). Panel data regressions (fixed effects, random effects, first difference and pooled ordinary least squares) were used to test the association between the level of ABR in human isolates and the level of ABU in animals.A positive relationship was identified between ABR in humans and ABU in cattle, with some evidence of a positive relationship for poultry and companion animals, and a negative relationship for fish, although the latter is likely driven by confounding factors. When lagging ABU by one year, the effect of ABU in cattle and companion animals remained similar, the effect of ABU in poultry fell in size, and ABU in fish was no longer significant, perhaps due to differences in life cycle length among animal species. Additional covariates were explored, including pet populations, agricultural production and GDP per capita (at purchasing power parity), but these results were limited by the statistical power of the dataset. Under all models, animal ABU determined only a minority of the change in human ABR levels in this context with adjusted R2 ranging from 0.19 to 0.44.This paper supports the role of animal ABU in determining human ABR levels but suggests that, despite comprising a large portion of systemwide ABU, it only explains a minority of the variation. This is likely driven in part by data limitations, and could also be due to a persistence of ABR once resistance has emerged, suggesting a significant role for socioeconomic and transmission factors in bringing ABR down to desirable levels.

The Economic Burden of Severe Acute Malnutrition with Complications: A Cost Analysis for Inpatient Children Aged 6 to 59 Months in Northern Senegal.

Severe acute malnutrition (SAM) is a high-fatality condition that affected 13.7 million children under five years of age worldwide in 2022, with complicated cases requiring extensive inpatient stay with an accompanying caregiver. Our objective was to assess the costs of inpatient treatment for complicated SAM in children aged 6 to 59 months in Northern Senegal and identify cost predictors. We performed a retrospective cost analysis, including 140 children hospitalized from January to December 2020 in five SAM inpatient treatment facilities. We adopted a societal perspective, including direct medical and non-medical costs and indirect costs. We extracted patients' sociodemographic and clinical data from medical records and conducted semi-structured interviews with healthcare staff to capture information on time allocation and care management. A multivariable generalized linear model with gamma family and a log link was used to investigate the factors associated with direct costs. Costs are expressed in 2020 international USD using purchasing power parity. Mean length of stay was 5.3 (SD = 3.2) days and diarrhoea was the cause of the admission in 55.7% of cases. Mean total cost was USD 431.9 (SD = 203.9), with personnel being the largest cost item (33% of the total). Households' out-of-pocket expenses represented 45.3% of total costs and amounted to USD 195.6 (SD = 103.6). Costs were significantly associated with gender (20.3% lower in boys), diarrhoea (27% increase), anaemia (49.4% increase), inpatient death (44.9% decrease), and type of facility (26% higher in hospitals vs. health centre). Our study highlights the financial burden of complicated SAM in Senegal in particular for families. This underscores the need for tailored prevention and social policies to protect families from the disease's financial burden and improve treatment adherence, both in Senegal and similar contexts.

EXAMINING THE VALIDITY OF PURCHASING POWER PARITY: EVIDENCE FROM SRI LANKAN CONTEXT IN RECENT PAST

This research study examined validity of Purchasing Power Parity (PPP) by studying the behaviour of nominal exchange rate and relative price levels between Sri Lanka and United States (US). The theory of PPP has been used to estimate the relationship between relative prices and nominal exchange rate between two countries. Exchange rate between USD/LKR has been taken as dependent variable whereas Relative Price Index between US Price Index and Colombo Consumer Price Index has been taken into consideration as independent variable. The study has been undertaken with the objective of estimating statistically whether Sri Lanka exists Purchasing Power Parity from January 2015 to December 2022. Data that has been collected for this study is monthly time series data from January 2015 to December 2022, which was collected from the data library of the Central Bank of Sri Lanka (CBSL) and data library of International Monetary Fund (IMF) have been used for this study. The results have been estimated using statistical techniques. These include mainly Augmented Dickey Fuller Test for Unit Root Testing, Descriptive Statistics, Ordinary Least Squared (OLS) method and Granger Causality Test. E-views statistical software is used to analyse the PPP model. Econometric Techniques are used to analyse the regression model.

Cost-effectiveness and benefits of perinatal health interventions in high-income settings: A protocol for a systematic review of economic evaluations.

Despite ongoing efforts, perinatal morbidity and mortality persist across all settings, imposing a dual burden of clinical and economic strain. Besides, the fragmented nature of economic evidence on perinatal health interventions hinders the formulation of effective health policies. Our review aims to comprehensively and critically assess the economic evidence for such interventions in high-income countries, where the balance of health outcomes and fiscal prudence is paramount. We will conduct a comprehensive search for studies using databases including EconLit (EBSCO), Cost Effectiveness Analysis (CEA) Registry, Medline (Ovid), Embase (Ovid), CINAHL Ultimate (EBSCO), Global Health (Ovid), and PubMed. Furthermore, we will broaden our search to include Google Scholar and conduct snowballing from the final articles included. The search terms will encompass economic evaluation, perinatal health interventions, morbidity and mortality, and high-income countries. We will include full economic evaluations focusing on cost-effectiveness, cost-benefit, cost-utility, and cost-minimisation analyses. We will exclude partial economic evaluations, reports, qualitative studies, conference papers, editorials, and systematic reviews. Date restrictions will limit the review to studies published after 2010 and those in English during the study selection process. We will use the modified Drummond checklist to evaluate the quality of each included study. Our findings will adhere to the Preferred Reporting Items for Systematic Reviews and Meta-analyses (PRISMA) 2020 statement. A summary will include estimated costs, effectiveness, benefits, and the incremental cost-effectiveness ratio (ICER). We also plan to conduct a subgroup analysis. To aid comparability, we will standardise all costs to the United States Dollar, adjusting them to their 2022 value using country-specific consumer price index and purchasing power parity. This systematic review will not involve human participants and requires no ethical approval. We will publish the results in a peer-reviewed journal. We registered our record on PROSPERO (registration #: CRD42023432232).

Patient-level cost analysis of intensive care unit-acquired infections: a prospective cohort study

Hospital-associated infections (HAIs) are associated with increased mortality and prolonged hospital length-of-stay (LOS). Although some studies have shown that HAIs are associated with increased costs, these studies only used cost estimates, were carried out in a small number of centres, or only in high-income countries. We carried out a prospective cohort study in ten Brazilian intensive care units (ICUs) selected from a collaborative platform study (IMPACTO MR). We included all patients aged 18 years or older admitted from October 2019 to December 2021 and who had an ICU LOS of at least two days. The costs were adjusted for official inflation until December 2022 and converted into international dollars using the 2021 purchasing power parity (PPP) conversion rate. We used a propensity score matching method to compare patients with HAIs and patients without HAIs, and patients with and without ventilator-associated pneumonia (VAP), central-line bloodstream infection (CLABSI), catheter-associated urinary tract infection (CA-UTI) and multidrug-resistant (MDR) HAIs. We included 7,953 patients in the study, of whom 574 (7.2%) had an HAI during their ICU stay. After propensity-score matching, patients with HAIs had ICU costs that were more than three times higher than those of patients without HAIs [$ 19,642 (IQR; 12,884-35,134) vs. 6,086 (IQR; 3,268-12,550); p <0.001). Patients with VAP, CLABSI, and CA-UTI, but not with MDR-HAIs also had higher total ICU costs. HAIs acquired in the ICU are associated with higher ICU costs. These findings were consistent across specific types of infection.

Currency devaluation and capital market performance in Nigeria

The research study delves into investigating the effects of currency devaluation on capital market performance in Nigeria using time series data from 1989 to 2021. Currency devaluation was captured using purchasing power parity and exchange rate of Nigeria domestic currency, while capital market was captured using total market capitalization of the Nigerian stock exchange with all variable serving as explanatory variables to Nigeria’s gross domestic product. Also the research employs the use of Johansen co-integration test to assess the long run relationship between all variables that are stationary at first order. Also granger causality test was adopted to determine the direction of causality between variables. The study found that exchange rate and purchasing power parity has a significant negative effect on total market capitalization in the long run. In addition, all independent variables granger cause each other as well as dependent variables. The study recommends that government should implement monetary policies that will increase the tempo of free financial flow into the capital market that will in turn stimulate economic growth and also recommended for further studies.

Russia’s Invasion of Ukraine and Implications for the Ukrainian Hryvnia and the Russian Ruble

This paper examines the interest rates, expected spot rates, and inflation rates of the Ukrainian Hryvnia (₴) to the Russian Ruble (₽). Our methodology analyzes international parity relationships, including Purchasing Power Parity (PPP) and the International Fisher Effect (IFE). Focusing on the four years from two years before Russia’s initial invasion of Ukraine on February 24, 2022, i.e., February 2, 2020 to post-conflict up to December 2023, we hypothesize that the geopolitical tensions induced by the invasion have led to significant fluctuations and high volatility of these currencies. Additionally, we propose that the economic consequences of the invasion, such as disruptions to trade and food and supply shortages, may further affect these variables by increasing domestic and international money financing, therefore triggering higher inflation rates. Our analyses indicate that spot rates predicted using international parity relationships suggest the weakening of the Ukrainian Hryvnia after the Russia-Ukraine conflict. Our findings shed light on the magnitude and direction of currency movements, providing insights into the economic ramifications of the conflict. Specifically, we aim to elucidate how the invasion has impacted the region's exchange rates and economic stability.

Willingness to pay for recreational fisheries in Europe

AbstractFew studies have acknowledged and quantified the economic contribution in expenditures of recreational fisheries. Additional economic value attributed to fishers' willingness to pay (WTP) for recreational fisheries in excess of expenses was estimated for 33 countries in Europe. Benefit transfer was used in a meta‐regression analysis of 184 studies and 1001 observations of WTP per day for recreational fisheries. Most studies of fishing were in the USA, but also in Europe, Australia, New Zealand, South America and Canada. Mixed‐effects regression models were estimated with income, climate variables, population density and study characteristics as explanatory variables. Income and temperature positively affected WTP per day. Benefit transfers with these variables and different transfer methods among European countries showed that the estimated total WTP could amount to 11.4 billion USD (purchasing power parity corrected to 2020 prices). Variation in WTP per day was large, and ranged 9–62 USD among countries and transfer methods. For several countries, WTP for recreational fisheries exceeded 0.1% of gross domestic product.

Exploring the policy implications of household wealth differentials and under-five child deaths in Ghana

BackgroundGhana was one of the few countries commended to have halved extreme poverty after the MDG era yet the under-five mortality rate (U5MR) was dire. Ghana’s U5MR is still above the national and global SDG target. As a result, the government has over the years implemented other complementary social and policy interventions to improve the socioeconomic status of households to ensure better child health outcomes. Yet key gaps exist and threaten child health outcome sustainability, and child health-related SDG targets. In this regard, we hypothesize that household wealth should therefore not influence under-five child deaths significantly.MethodsThe paper first reports the under-five mortality trend over the past 30 years in Ghana. It uniquely analyses the levels and trends in wealth as measured by the Gross National Income per capita at purchasing power parity (ln GNI/p, ppp) as a proxy of the mean Comparative Wealth Index (CWI) against under-five child deaths in Ghana. Using data from the 2014 Ghana Demographic and Health Survey and employing the logistic regression estimation technique, the paper further estimates the effect of household wealth and other key covariates on under-five child deaths. Implemented government poverty-alleviating policies and intervention programs to reduce childhood mortality in Ghana were reviewed to identify risk gaps to child deaths.ResultsThe 30 year trend analysis from 1990 to 2020 shows that the under-five mortality rate in Ghana is still high, falling short of the rate of decline that is expected toward achieving the 2030 SDG target for U5MR of 25 deaths per 1000 live births. Our empirical estimations show that household wealth still has a negative and significant relationship with under-five child deaths despite the government’s existing poverty-alleviating and pro-poor health policies. In addition, the results show that regional differences, maternal age, the number of children alive, and attendance to postnatal healthcare services are crucial for child survival.ConclusionThe results imply that the government should consolidate universal programmes with intensified targeted interventions toward improving household wealth, especially in the Northern Savannah regions. A new and dynamic child health policy is imminent to reflect strategies towards achieving the SDG target on U5MR. Additionally, intensive education on active maternal participation in postnatal care should be given critical consideration to improve child survival.

Perils of Comparing Defence Spending

Many observers of the contemporary Sino-American relationship are concerned about the growth of China’s military power. Figuring out the extent of China’s military investment is however difficult because of the unreliability of official Chinese statistics. Some analysts have tried to formulate their own estimates of China’s military spending using purchasing power parity (PPP) to account for China’s lower labour and production costs. Anand Toprani explores the dangers of relying on PPP calculations using the lessons learned from the flawed assessments of the Soviet Union during the Cold War. He argues that focusing on dollar figures says little about actual military capabilities and the asymmetries between US and Chinese militaries. ◼

An Assessment of Purchasing Power Parity in the Long-Run: Evidence from India and its four Major Trading Partners

The present study focuses on evaluating the validity of the Relative Purchasing Power Parity (RPPP) theory for India and its four major trading partner nations namely the United States, China, the United Arab Emirates, and Saudi Arabia using monthly time series spanning January 2001 to March 2021. For the purpose of empirical analysis, standard Augmented Dickey Fuller (ADF) and Phillips-Perron (PP) unit root tests, as well as the Johansen-Juselius cointegration technique, have been applied. Firstly, the stationarity of the real exchange rate has been investigated using standard unit root tests. The findings indicate that each country’s real exchange rate is nonstationary signifying the absence of strong PPP. Thereafter, the weak form of PPP was tested in the second stage using the Johansen cointegration test. The findings of the cointegration test confirm the presence of a long-run relationship among bilateral exchange rates, domestic price levels, and foreign price levels for all countries undertaken except for the UAE. Since three economies from among the total four trading partners’ country-pair support the existence of PPP, it can be said that PPP holds for the Indian rupee exchange rate for the economies so considered. The study further signals that India’s trade with the UAE could lead to arbitrage opportunities.

Synchronization analysis between exchange rates on the basis of purchasing power parity using the Hilbert transform

Synchronization is a phenomenon in which a pair of fluctuations adjusts their rhythms when interacting with each other. We measure the degree of synchronization between the U.S. dollar (USD) and euro exchange rates and between the USD and Japanese yen exchange rates based on purchasing power parity (PPP) over time. We employ a method of synchronization analysis using the Hilbert transform and find that the degree of synchronization is high most of the time, which suggests the establishment of PPP. The degree of synchronization does not remain high across periods with asymmetric economic events such as the U.S. real estate bubble.

Quantifying the economic value of earlier and enhanced management of anorexia nervosa for adults in England, Germany and Spain: improving the care pathway.

Anorexia nervosa (AN) is a serious mental illness. One-third of people develop severe, enduring, illness, adversely impacting quality of life with high health system costs. This study assessed the economic case for enhanced care for adults newly diagnosed with AN. A five-state 312-month-cycle Markov model assessed the economic impact of four enhanced care pathways for adults newly diagnosed with AN in England, Germany, and Spain. Enhancements were halving wait times for any outpatient care, receiving specialist outpatient treatment post-referral, additional transitional support post-referral, and all enhancements combined. Care pathways, estimates of impact, resource use, and costs were drawn from literature. Net monetary benefits (NMBs), impacts on health system costs, and disability-adjusted life years (DALYs) averted were estimated. Parameter uncertainty was addressed in multi-way sensitivity analyses. Costs are presented in 2020 purchasing power parity adjusted Euros. All four enhanced care pathways were superior to usual care, with the combined intervention scenario having the greatest NMBs of €248,575, €259,909, and €258,167 per adult in England, Germany, and Spain, respectively. This represented maximum NMB gains of 9.38% (€21,316), 4.3% (€10,722), and 4.66% (€11,491) in England, Germany and Spain compared to current care. Healthcare costs would reduce by more than 50%. Early and effective treatment can change the trajectory of AN. Reducing the untreated duration of the disorder is crucial. There is a good economic case in different country contexts for measures to reduce waiting times between diagnosis and treatment and increase access to enhanced outpatient treatment.

Policies and tools for climate change policy implementation: a panel data analysis at industrial and commercial level

Climate change is a very debated topic among academia, national and international institutions. Therefore, policies and tools for diminishing pollutant emissions are in place in a number of countries. Among them, taxation and renewable energy use seem to be among the most important. This paper aims at testing the impact of certain tools for climate change policy implementation, such as environmental taxes, renewable energy use, real productivity, employment rate taking into consideration the level of economic development and the GINI coefficient, on the greenhouse gas emissions in two important sectors of the economy: industry and commerce. Panel data analysis is used for a cluster of nine developing countries of the European Union that have the per capita GDP at purchasing power parity lower than 80% of the EU average, during 2008–2021. Similar to other studies, the results show a negative relationship between environmental taxation and greenhouse gas emissions in the industrial sector, and a positive one in the commercial sector. The latter is explained by the fact that transport, which is a main pollutant sector, is also one of the most difficult sectors to achieve green transition, given high associated costs. The analysis also shows that renewable energy use discourages the emissions of greenhouse gases, both in the industrial and commercial sectors, so that fostering investment in renewables is an important factor for addressing climate change and promoting a sustainable growth.

Analyzing Exchange Rate Effects on Trade: Empirical Evidence

In this study, we aimed to find a fair exchange rate for Egypt, exploring how exchange rate policies affect the country’s economic growth and food security. We also sought to answer an important question for Egyptian policymakers: “Do current exchange rate policies help reduce Egypt’s trade deficit?”. We used two methods in our research: First, we applied the purchasing power parity (PPP) method to determine the equilibrium real exchange rate (ERER). Then, we combined the computable general equilibrium model (CGE) with the ERER value from the PPP method to observe how different sectors interact with the overall economy and understand how household incomes and poverty levels are related. Our findings showed that the fair exchange rate is EGP 38.5 per US dollar, according to the PPP method. This new exchange rate may significantly impact the Egyptian economy. Some impacts are positive, such as better real GDP, more exports, and fewer imports; however, these are minor and not significant. On the downside, it may lead to higher inflation, increased prices for goods, and reduced consumption. Moreover, this study highlights the importance of having balanced exchange rate policies that consider Egypt’s unique economic situations, and challenges and align with other economic policies. Experience and reality have shown that exchange rates alone are not the only solution.