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The article offers a reassessment of the optimal currency area in the European Union and elaborates on the prospects for its expansion in the modern economic conditions. The assessment builds on the example of Central and Eastern European countries that have joined the euro zone in the recent years. The aim of the study is to compare the performance of the euro-zone countries with that of the non-euro-zone countries in order to determine whether the implementation of the common currency and centralized monetary policy helps to protect national economies from external shocks (balance-of-payments crises) better than keeping national currencies and pursuing independent monetary policy. This would, in turn, help to determine whether the optimum currency area in the European Union is still in existence today and whether it has potential to expand and generate benefits for its future members. The findings of the study prove that the euro zone remains to be an optimum currency area in the given borders with a potential for further expansion.

This article analyses late 1960s’ and early 1970s’ policy debate on issues concerning balance of payments in Sweden. Part of this debate was the question of fiscal austerity as a tool to achieve external balance, and if it could be used without risking economic and social unrest. The aim is twofold: first to empirically shine new light on modern Swedish economic policy in a historic context. Second to theoretically explore new ways of interpreting the relationship between political thinking and economic ideas. Special focus within the second aim are the consequences of political thinking on Keynesian economic ideas as a framework of economic understanding at the time. The study is qualitative in its methods and pays attention to limits within the relationship between economic policymaking and economic expertise. The article highlights conflicting perspectives on Keynesian ideas and the heterogeneity of these perspectives among economic experts. A heterogeneity of this kind is also shown to complicate the assumed close relationship between Social Democracy and Keynesianism in a historic context. In essence, the article shows that studying policy debates in close historic detail makes for new conclusions on the development of modern economic ideas and the part political thinking plays in it.

We studied the balance of payments data for a set of Latin American countries between 1990 and 2019. We intended to quantify the main items of foreign exchange income and expenditure. We were particularly interested in studying the magnitude and role of financial flows, either as a source of external resources or as an item of expenditure. The analysis was carried out in two dimensions: cross section (for a sample of 11 nations) for the entire period and over time for the three decades covered by the data. This study offers an empirical basis to reassess the traditional view that places an “external constraint” on growth in the foreign trade. In contrast, the data analyzed here suggest that items related to financial flows are the main responsible for external vulnerability of these countries. RESUMO Estudamos os dados do balanço de pagamentos de um conjunto de países latino--americanos entre 1990 e 2019. Pretendíamos quantificar os principais itens de receita e despesa em moeda estrangeira. Estávamos particularmente interessados em estudar a magnitude e o papel dos fluxos financeiros, seja como fonte de recursos externos, seja como despesa. A análise foi realizada em duas dimensões: seção transversal (para uma amostra de 11 nações) para todo o período e ao longo do tempo para as três décadas cobertas pelos dados. Este estudo oferece uma base empírica para reavaliar a visão tradicional que impõe uma “restrição externa” ao crescimento do comércio exterior. Em contrapartida, os dados aqui analisados sugerem que os itens relacionados aos fluxos financeiros são os principais responsáveis pela vulnerabilidade externa desses países.

The paper contains a retrospective analysis of macroeconomic policy and reforms in the countries of the former Soviet Union (FSU) from 1992 to 2021, after obtaining political and economic independence in 1991. Special attention is given to problems of macroeconomic stabilization and economic growth. As a result of structural distortions inherited from the Soviet economy and the slow pace of economic and institutional reforms, the FSU countries suffered from a long and deep output decline in the 1990s. Their post-transition growth recovery in the 2000s did not last long. Furthermore, they remain vulnerable to both domestic and external economic shocks. Given the limited predictability of post-COVID global economic trends and the damaging consequences of the war in Ukraine, this vulnerability will likely continue in the next couple of years.

A number of developing countries mainly in East Asia and Latin America and Russia suffered exchange rate crises in the 1990s. We examine the run up to the crisis in terms of a few macro indicators suggested by various crisis models. We then examine the aftermath of the crisis, in contrast to most empirical work that concentrates on determining the causes of crises. We seek to explain the pre-crisis as well as the post-crisis situation in the light of various crisis models. We find that the first-generation crisis model despite anomalies seems to fit the crises in Latin American countries whereas it does not fit the crisis in the Asian countries. The Russian case is different from any of the crisis models. The crisis eliminated the Dutch disease aspects leading to a large increase in exports and an improvement in the current account balance. This resulted in a higher growth rate of GDP. We also find that the exchange market pressure index is not successful in predicting the crises. RESUMO Vários países em desenvolvimento, principalmente no Leste Asiático e na América Latina e na Rússia, sofreram crises cambiais na década de 1990. Examinamos a corrida até a crise em termos de alguns indicadores macro sugeridos por vários modelos de crise. Em seguida, examinamos as consequências da crise, em contraste com a maioria dos trabalhos empíricos que se concentram em determinar as causas das crises. Procuramos explicar a situação pré e pós-crise à luz de vários modelos de crise. Descobrimos que o modelo de crise de primeira geração, apesar das anomalias, parece se adequar às crises dos países latino-americanos, ao passo que não se ajusta à crise dos países asiáticos. O caso russo é diferente de qualquer um dos modelos de crise. A crise eliminou os aspectos da doença holandesa levando a um grande aumento das exportações e à melhora do saldo em conta-corrente. Isso resultou em uma maior taxa de crescimento do PIB. Também descobrimos que o índice de pressão do mercado de câmbio não tem sucesso em prever as crises.

The subject of the study is the dynamic mechanism of the formation of the exchange rate of the Russian ruble in a multilevel system of economic fundamental determinants-aggregates in the context of the independent floating rate of the national currency. The aim of the study is to develop the author’s theoretical and methodological conceptual approach to modeling the dynamics of the equilibrium exchange rate based on international flows (IFEER) and to develop a new model of the Russian ruble exchange rate dynamics on its basis. The methodological base of the research includes system analysis, fundamental methods of economic theory, classical methods of mathematical analysis, and economic and statistical analysis, and the provisions of national accounting. The paper presents data on the verifcation of the results of modeling mediumterm equilibrium dynamics. At the same time, the author pays considerable attention to the mathematical modeling of the long-term dynamics of the ruble exchange rate in comparison with the medium-term equilibrium dynamics and the mathematical analysis of internal functional relationships in modern conditions, which determines the scientifc novelty and relevance of the study. Based on the conducted mathematical modeling, the author concludes about the trends of a stronger ruble exchange rate in the long run, while maintaining the current long-term trends.

There is an increasing need for in-depth theoretical and applied studies of the essence, structure and features of the formation of the exchange rate, the development of the mechanism of currency regulation in the Russian Federation, determining the degree of state regulation of currency relations, including due to the introduction of currency restrictions, clarifying the main criteria for the effectiveness of their application, as well as developing directions for improving the mechanism of currency regulation in the conditions of post-crisis economic development. The main purpose of this article was to consider the peculiarities of the formation of the exchange rate in a resource-oriented economy, which includes the Russian economy. The article uses general scientific methods, in particular, analysis, synthesis, comparison, as well as a systematic approach to the study of information. The value of the exchange rate for the economy is indicated. The main indicators of exchange rates and the main groups of factors affecting the exchange rate of the national currency are described.

The purpose of the study was to assess the determinants of the balance of payment in Tanzania. The nature of this study was quantitative where secondary time series data covering a period of thirty-one years between 1990 and 2020 were collected. The study performed descriptive statistics and diagnostic tests such as normality test, unit root test for stationarity, Pearson’s Correlation matrix to check if there is a multicollinearity problem in the data. The diagnostic tests revealed that the data bring unbiased results, therefore the ordinary least square regression was performed and we found that foreign direct investment and inflation rate have a negative and significant influence on the balance of payment, whereas exchange rate has a positive and insignificant influence on the balance of payment, and the interest rate has an insignificant negative influence on the balance of payment. Finally, we recommend that a country have to introduce relative prices of imports in order to improve the inflows of FDI in order to have a favourable balance of payment in a country like Tanzania. Also, Tanzania's central bank must be cautious in its monetary policy and take some beneficial steps to regulate the money supply. To attract the new internal investor, it must keep an eye on interest rates and charge a low-interest rate.

Traditional GDP calculations exclude the ecological environment and natural resource depletion, arguing that sustained economic growth can lead to sustained welfare improvements. The Index of Sustainable Economic Welfare (ISEW) is a monetary measure of sustainability and economic welfare aimed at overcoming some of the limitations of GDP. Given the significant impact of industrial development, the demographic composition, and the balance of payments in economic growth and sustainable economic well-being, we propose an improved ISEW method (SE-ISEW), where the structural index is used instead of the Atkinson index as a measure of structural imbalance. This study calculates and compares the ISEW and SE-ISEW for 30 provinces in mainland China from 1997 to 2017 and discusses highly controversial methodological assumptions related to income inequality, long-term environmental damage, and nonrenewable energy consumption. Findings show that China's GDP is larger than ISEW and SE-ISEW respectively. Moreover, the “relative threshold effect”—increases in social welfare are slower than the expansion of economic scale—has been found in many provinces. In the case of rapid economic growth, the gap between GDP and ISEW or SE-ISEW has increased over time. This study reveals an unbalanced development of China's economic growth and sustainable welfare growth and provides a new way of thinking about structural transformation.

Puzzled by the demeaning level of poverty most African countries continue to grapple with despite their extensive participation in international trade, the study attempts to examine the encumbrances that tend to impede African countries from optimally reaping the developmental gains inherent in partaking in international trade, which seems to also worsen the economic misery the inhabitants endlessly contend with. The System Generalized Method of Moments (System-GMM) estimation technique was used in the study which involves 17 African countries and spans from 1995 - 2018. While misery index is used to measure economic misery, the impact of international trade on economic misery is captured by means of its effect via economic misery, economic growth rate, balance of payment, total export, manufacture export and exchange rate. The results of the study reveal that balance of payments, total export, manufacture export, per capita GDP growth rate, exchange rate and lagged form of economic misery all have positive effect on economic misery. While the effects of total export, manufacture export, per capita GDP growth rate, and exchange rate on economic misery are significant, those of balance of payments and lagged form of economic misery are insignificant. While the study recommends that international trade be engaged strategically such that it results in favourable balance of payments, it also encourages the discarding of obsolete trade policies such as outright bans on importation of certain commodities. Bilateral trade agreements are recommended over multilateral trade agreements, since they are more mutually beneficial and binding on the parties involved

This paper demonstrates that the measured stock of China's holding of U.S. assets could be much higher than indicated by the U.S. net international investment position data due to unrecorded historical Chinese in ows into an increasingly popular global safe haven asset: U.S. residential real estate. We first use aggregate capital ows data to show that the increase in unrecorded capital in ows in the U.S. balance of payment accounts over the past decade is mainly linked to in ows from China into U.S. housing markets. Then, using a unique web traffic dataset that provides a direct measure of Chinese demand for U.S. housing at the zip code level, we estimate via a difference-in-difference matching framework that house prices in major U.S. cities that are highly exposed to demand from China have on average grown 7 percentage points faster than similar neighborhoods with low exposure over the period 2010-2016. These average excess price growth gaps co-move closely with macro-level measures of U.S. capital in ows from China, and tend to widen following periods of economic stress in China, suggesting that Chinese households view U.S. housing as a safe haven asset.

The introductory part of the article formulates its objective – to characterize development conditions in Russia and main structural changes in the Russian economy (according to 2014–2019 data) from the standpoint of their compliance with the tasks of increasing the stability and quality of the country's economic growth during the transition of the world system to a new technological order. Аccording to the authors, this period is of particular interest in assessing and studying the experience associated with structural transformation in a highly unfavorable external condition amid tight monetary policy and restrictive income policy.The article sequentially addresses certain aspects of the structural transformation of the Russian economy. The authors, relying on macroeconomic statistics, assess shifts in production and use of products, investment, import intensity, the balance of payments, and international investment position, considering external and internal conditions.The paper focuses on analyzing the proportions of the economy according to the data of the Rosstat input-output tables (IOTs). The article provides estimates of structural changes in the dependence of the economy and its segments on types of imports, signifcant changes in the direction of the use of fnal products, including considering the dynamics of changes in the total input of intermediate imports. For the frst time, the characteristics of the concentration of gross value added (GVA) and gross domestic product (GDP) by areas of fnal demand are given. A methodological approach is proposed for monitoring shifts in import consumption by compiling annual summary tables with a minimum set of data obtained during the analytical processing of IOT information. Based on the results of testing this approach on data for 2016 and 2018, the authors rated cost product balances by the share of imports in the resources of products. Conclusions were drawn about the change in the import intensity of the economy for the selected types of products, the import intensity of Russian industries, and shifts in the distribution structure of types of imported products. The article formulates proposals for the development of measures necessary to consolidate and expand positive results of this stage in the development of the Russian economy and statistical support of macroeconomic analysis.

This paper investigates the dynamic relationship between perceived corruption and foreign direct investment (FDI) in Egypt during the period 1970–2019. Using a novel back-casting methodology, it extrapolates perceived corruption time series between 1970 and 1980. The results of the Johansen cointegration technique and the multivariate vector error correction model show a positive relationship between perceived corruption and FDI, supporting the “greasing the wheels” effect of corruption. This positive association can be explained by several factors, such as the cross-interdependence of rent-generating assets with perceived corruption and FDI, and the use of FDI data based on the balance of payments that has growing financial-flows and phantom-FDI components. The findings of this paper have important policy implications. Improving the fundamental governance structure in Egypt should be accompanied by a comprehensive investment facilitation strategy to compensate for the removal of “grease” from the “wheels”.

The purpose of the study is to study the cluster organization of management on the example of tourism in the context of the problem of creating an economy of an industry cluster. The research method is a methodological analysis of the problem of creating clusters in Kazakhstan tourism in the context of the problems of its organization and individualization. Modern tourism has become one of the spheres of the national economy and traditional business. Tourism has an impact on the development of the national economy, providing employment and additional jobs. In the sectoral structure of the national economy, tourism has a strong multiplier effect. Tourism influences the development of transport, the hospitality industry, public catering, and national crafts. Expanding the scope of employment of the population, tourism contributes to solving social problems of society, improving the standard of living of the people, the quality of human potential. By developing tourism, the country's economy can get not only these positive effects. But also the effect of the inflow of foreign currency and thus a positive impact on the balance of payments and total exports of the country. Kazakhstan has a diverse raw material base for the development of tourism. The raw material base of tourism is represented by tourist and recreational resources. The development of tourism and the contribution to the GNP of Kazakhstan is characterized by a low level. Currently, an external factor–COVID-19-has a negative impact. The introduction of sanitary quarantine on a global scale, the closure of national borders has led to the stagnation of both external and internal tourist flows. As a result, the tourism industry is in crisis. The creation of clusters contributes to the competitiveness of Kazakhstan's tourism. The role of clusters is to develop partnerships between the state and business. In the Concept of development of tourism industry of Kazakhstan until 2023 it is expected to create six cultural tourism clusters:"Astana - heart of Eurasia","Almaty – free cultural zone of Kazakhstan"," the Pearl of Altai", "Revival of the Great Silk Road", "the Caspian gates","the Unity of nature and nomadic culture". Building a cluster is not simply a matter of adding up production and services. The tourism cluster creates its own Economy, which has an intersectoral nature of product design, preparation for the production of new products.

The exchange rate is one of the important tools that are used to protect ‎the local economy from expected shocks, so the research focused on the ‎subject of the impact of this variable on the balance of payments ‎because these two variables have a very close relationship, which ‎consequently affects foreign trade and the structure of the national ‎economy, especially in Iraq, and contributes to treating various ‎imbalances of the local economy and restore balance and stability to ‎most of its associated variables. Keywords: Economy, Iraqi Balance, Local Economy

The 1950s in Germany, especially the period 1953–1958, were later recognised as the ‘golden years of the post-war period’. By the end of this period, most of the war damage had been removed and the economy was in a state of dynamic growth. In the period 1949–59, the average real GDP growth rate was about 7.4% with an average investment rate of 24.2% (in current prices). In the years (1950–53), a massive housing construction programme was carried out that was financed almost in half from public funds. Germany’s economic growth in 1950–60 mainly influenced by investment activities and the growth of exports. During this period, state expenditure did not play a major role in the growth of the West German economy (its share in national income steadily declined during the period in question). A the same time, the share of exports in national income was very high and showed a continuously increasing trend. A long-term growth of exports — affecting constantly the expansion of demand — became an important factor stimulating investment activity, which is the main lever of economic growth. At the same time, unusually strong export activity improved the balance of payments, which showed systematic surpluses. It should also be stressed that private consumption was not a factor driving economic prosperity in West Germany in this period. The share of consumption in Germany’s national income showed a declining trend in favour of investment.

The purpose of this study is to analyze what factors affect foreign exchange reserves in Indonesia. The focus in this study is the variables that affect changes in foreign exchange reserves in the 1999-2019 period are non-oil and gas exports, the rupiah exchange rate, foreign debt and inflation as independent variables. Using an open economy model and Keynes's balance of payments, the analytical tools used in this study are the PAM regression model (Partial Adjustment Model) and the adaptive expectation model to see the long-term and short-term effects of the independent variable on the dependent variable. The results of this study show that simultaneously non-oil and gas exports, the rupiah exchange rate, foreign debt and inflation affect Indonesia's foreign exchange reserves, while partially non-oil exports and the rupiah exchange rate significantly and positively affect Indonesia's long-term and short-term foreign exchange reserves, while debt foreign exchange and inflation are not significant and negatively affect long-term and short-term foreign exchange reserves. Non-oil exports, rupiah exchange rate, foreign debt and inflation can explain Indonesia's foreign exchange reserves of 97%, of which the remaining 3% is explained by other variables not included in this study.

PurposeThis study explored the impact of COVID-19 on the petroleum sector in Egypt, both economically and socially. Of all sectors of the economy, the oil industry has been one of the most negatively impacted by the pandemic, with oil prices plummeting at the start of the pandemic. Use to decrease demand. This paper aimed to analyse the main economic and social effects of the pandemic on the Egypt oil industry through an examination of the macroeconomic data reflected in the Egyptian balance of payments, the country's general budget and the oil industry's performance data. The study also conducted a survey of a set of workers from the Egyptian petroleum sector. The study thus concluded two levels of analysis; a macrolevel and a micro level analysis of the effect of COVID-19 on the Egyptian oil industry.Design/methodology/approachThe paper builds upon the experience gained from evaluating market change caused by COVID-19 (Agosta et al., 2020), to analyse the socioeconomic implications of COVID-19 on the Egyptian oil industry. This study employed a survey analysis of questionnaires filled by on a sample of workers in the petroleum sector in Egypt. Data were analysed using the SPSS software, version 18.0. Descriptive analysis was reported as frequencies and percentages. The macroeconomic impact analysis was done by analysing macro-economic data pertaining the oil industry's levels of production as well as the data pertaining to Egypt's external balance of payment and public finance.FindingsThe paper concludes that although the COVID-19 pandemic had negatively impacted the socioeconomics of oil sector workers, reducing their incomes and costing them jobs, these effects appeared to be short term effects that could be minimised with the end of the pandemic and be mitigated through the adequate social and economic policies. No permanent socioeconomic losses were thus deemed to be a serious concern with respect to these workers. The study also concluded that, macroeconomically, lower global oil prices has had a net positive effect on the Egyptian economy as the causing an expected shrinkage of the overall trade deficit. It also has reduced the national budget deficit and has helped mobilise money into the economy, financing both investments and social expenses.Research limitations/implicationsThe survey was very hard to reach, where lot of workers in the petroleum sector (governmental) refused to answer the questions.Practical implicationsSome African countries may not have all the necessary most recent data of economic indicators needed to ascertain with certainty the economic impact of the COVID-19 pandemic. And, at the event that data are completely available, analysts must consider that any worsening of the economy may not stem directly from the pandemic itself. Causality has to be clearly established. The survey therefore focused on the attitudes and perceptions of oil sector workers, irrespective of whether a given indicator had been affected by the pandemic or is seen likely to be affected by it in the future. All those responding have reported the belief that economic indicators, such as GDP growth, inflation and trade had been impacted negatively by the spread of COVID-19. They also believed the effects of the pandemic on transport to have had direct effects on the oil industry.Social implicationsThe social impact of the pandemic was less apparent, particularly among governmental sector workers compared with those in the private sector. However, freelancers have reported some issues that may be become more apparent through aggregated data.Originality/valueThis study has presented some preliminary estimates of the impact of the COVID-19 outbreak on petroleum sector in Egypt. The goal was not to be definitive about the virus outbreak, but rather to provide information about a range of possible economic costs of the disease. While, a detailed quantification of the socioeconomic impact of the coronavirus pandemic may not be feasible, it is still useful to identify possible transmission channels through which the pandemic may affect the Egypt economy and society. It is also useful to identify key issues that are likely shape short- and medium-term socioeconomic prospects in Egypt as a result of the COVID-19 pandemic outbreak in Egypt.

Foreign direct investment are the net inflows of investment to acquire a lasting management interest which is 10 percent or more of voting stock in an enterprise operating in an economy other than the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. This paper will discuss the definitions and findings of previous studies regarding Foreign Direct Investment. This paper also will explain about forecasting techniques used in previous studies in forecasting Foreign Direct Investment. Time Series Analysis is used to determine a good model that can be used to forecast business metrics.

Migration and remittances have always been an exciting arena of research for economists around the globe. Remittance flows have evolved as a significant economic variable over the past decade. In several developing countries, remittances exceed the other capital inflows and value of total exports. Thus, it is widely recognised as a potential funding source for economic development in emerging economies. The inflow of remittances to India has increased tremendously in the recent past making the country the highest recipient of remittances across the globe. Remittances are an essential component that contributes to narrowing the Current Account Deficit and has always been a stable constituent of the Balance of Payment. This paper is an attempt to explore the vital macroeconomic variables which determine the remittance flows to India. Notably, we enquire into the dominant motives of remittances in the Indian context. We employ an ARDL approach to cointegration to identify the macroeconomic determinants of remittances and find those crucial variables such as exchange rate, oil price, and domestic GDP substantially impact the flow of remittances. The results also indicate that the migrants are more vulnerable to the oil price shocks in host countries. The overall findings of our study are that (1) remittances are not countercyclical in the Indian context (2) remittances are subject to weak investment motive as opposed to the altruistic motive.

Foreign remittance is the second-largest source of foreign exchange in Pakistan which makes international migrant workers key players in the balance of payments equation of Pakistan. The Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) are the most common destinations for unskilled migrant workers from Pakistan. With the increasing costs of migration and the sluggish economic performance of the Middle East in recent years before the pandemic, unskilled workers in the region are finding it increasingly difficult to maintain the flow of remittances to their families. This study contributes to the literature on remittances by: (1) identifying the determinants of sending remittances by unskilled Pakistan migrants in KSA and UAE; (2) finding the determinants of the wage differential between foreign jobs and local jobs of unskilled Pakistani workers; and (3) estimating the average time that a worker needs to potentially repay the costs of migration. Data for the empirical analysis came from the Knowledge Partnership on Migration and Development (KNOMAD) and the International Labor Organization (ILO) 2015 Migration and Recruitment Costs Survey in Pakistan. The findings suggest that experience and income are the most important determinants of remittances. However, the returns to education and experience are lower in KSA and UAE for unskilled labor as compared to Pakistan. Moreover, the economic costs of migration are high for these workers as it takes between five and nine years to recover the costs of migration. Unskilled migrants are important assets for Pakistan that will boost foreign reserves and reduce the balance of payment deficit. However, the opportunity cost of migration is high for educated and experienced workers and labor migration policies should consider both the costs and benefits of unskilled migration.

This study empirically analyzed external debt management and economic development in Nigeria. The data employed in this study were collected from the CBN statistical bulletin annual report. The study employed Real Gross Domestic Product as the independent variable, while External Debt service, Balance of Payment, External Debt, and Exchange Rate were used as independent variables. The estimation technique employed in this study was Ordinary least squares (OLS) multiple regression method. The findings of this study revealed that external debt management recorded a positive and significant impact on economic development in Nigeria over review period. The study recommended that government of Nigeria should strike a balance between the acquisition of external debt and usage of same for projects that will culminate to enhancement of economic growth and development in Nigeria.

The issue of Egyptian exports is at the forefront of priorities because it is one of the main sources of obtaining foreign exchange, and a means to reduce the deficit in the balance of payments. The problem of the research is that despite the importance of Egyptian citrus as an important export crop, and Egypt is ranked third as the most important citrus exporting country in the world However, Egyptian citrus exports face strong competition in global markets, and the main objective of the research is to estimate the functions of demand for Egyptian citrus exports in the most important global clusters, using the semi-optimal demand model in order to identify the possibility of increasing its competitiveness in those markets. The price demand for Egyptian citrus indicates that an increase in its prices by about 1% leads to a decrease in demand for it in the Russian market by about 0.74%, and this means that it is a commodity with inelastic demand in this market, as shown by the elasticities of price demand for Egyptian citrus that the increase in its prices is about 1% leads to a decrease in demand for it in the Chinese market by about 0.03%, and this means that it is a commodity with inelastic demand in this market, as the results indicate The price demand for Egyptian citrus fruits indicated that an increase in their prices by about 1% leads to a decrease in demand for them in the Indian market by about 0.45%, and this means that they are a commodity with inelastic demand in this market.

This study examined the impact of exchange rate on balance of payments in Nigeria. Data for the study which are balance of payments, exchange rate, interest rate, trade openness and crude oil price were extracted from the Central Bank of Nigeria (CBN) statistical bulletin covering the period 1981-2019. The method of data analysis is the Vector Error Correction Mechanism (VECM). The results reveal that there is a positive relationship between balance of payments and exchange rate in Nigeria, exchange rate has significant impact on balance of payments in Nigeria (t-stat = 2.47441) and there is causality relationship between exchange rate fluctuations and balance of payments in Nigeria (p-value = 0.0174 < 0.05). It is therefore the recommendation of this study that the government should encourage make political and industrial peace and stability a top macro-political policy priority.

National development seeks to achieve fairly high economic growth, the ultimate goal of which will be to improve the quality of life and welfare for the entire community. Economic growth is interrelated with the process of increasing the production of goods and services in people's economic activities. In other words, growth is a single-dimensional development and is assessed by increasing production output and increasing income. This shows an increase in national income which is reflected by the total number of Gross Domestic Product (GDP). Indonesia, as a developing country, is in the midst of carrying out planned and gradual development, without neglecting the efforts of equity and stability in the face of the Covid-19 pandemic, which has made a number of sources of funds used to maintain public health so that for development and equitable distribution of the people's economy, the government is expected to recover immediately. People's economy slumped. Economic growth is a long-term economic problem and is a fundamental phenomenon in every country today. The process of economic growth has parameters with measurements through GNP, foreign exchange reserves, the balance of payments balance, and others. However, Islam commands humans to uphold justice in all issues related to muamalah, including economic justice. Zakat is one of the pillars in reducing the gap between the rich and the poor. QS At Taubah 60 explains that humans are entitled to receive zakat, the first 4 parties are high priority and the second 4 parties are low priority. Through the Amil Zakat Agency as an official government institution, the portrait of economic inequality can be reduced from year to year. This agency has become a reference for the international community as an innovative and massive agency or institution in helping the people.

The digitalization of the financial sector in developed legal systems, the use of block chain technology, the introduction of digital forms of participation in civil turnover, and the introduction of the possibility of settlements in digital currencies, are designed to increase the efficiency of the economy and, ultimately, improve the quality of life of citizens. However, technological progress and positive expectations from the introduction of digital technologies in the sphere of public relations cannot guarantee protection of the values enshrined in the Basic Laws of certain states. While acknowledging the fact that the level of crime in the sphere of economic activity is one of the indicators of national economic security, special attention should be paid to the evolution and forecasting of the means of criminal legal protection of the monetary system, which is currently undergoing a process of digital transformation. This is due to the fact that digital financial technologies carry certain risks for the monetary system, due to objective factors. Firstly, many things depend on the functioning of the monetary circulation and the effectiveness of currency restrictions, for example, the macroeconomic indicators of the stability of the economic system, the exchange rate of the national currency, the achievement of the balance of payments necessary for stable development, and the country's position in the international arena. Secondly, in the context of increasing structural imbalances in the world economy and the global financial systems, the growth of private and sovereign debt, the widening gap between the valuation of real assets and derivative securities, it is the sphere of currency regulation and currency control that becomes one of the stabilizing tools in the system of state measures to support the economy. Add to those the sharp decline in the role of traditional factors of economic growth associated with scientific and technological changes. Transactions by dint of new technologies are recognized as high-risk around the world due to the instability of their existence. Taking into account the data, as well as other risks of the introduction of digital technologies, therefore, requires an analysis of the problems of legislative regulation of criminal liability for crimes in the field of digital finance.

We apply Thirlwall’s law (Thirlwall 1979) to estimate long run growth in the UK. In particular, we develop a new test allowing for potential structural breaks based on 2SLS to remedy potential weak...

PurposeThe aim of this paper is to make a descriptive exploratory effort to discern the role of IT exports in India's macro-economic indicators, like national income, employment and balance of payment in the post-Liberalization, Privatization and Globalization strategy in the 1990s. The paper also explores the vital historical developments of various dimensions of IT, such as its export growth, major software and services exports destinations, compositions of IT exports and domestic growth in India.Design/methodology/approachThis study is based on secondary data, which were collected from Balance of Payment Statistics Reserve Bank of India (RBI) and Handbook of Statistics on Indian Economy, National Association of Software and Service Companies (NASSCOM),rtd and Department of Electronics and Information Technology (DEITY). This study has used descriptive analysis and growth models for studying the objectives. Major IT sector dimensions, such as total output, exports revenue, domestic revenue, gross domestic product, employment and exports of the software and service industry, have been examined for the period 1991–2016.FindingsThe findings suggest that over the last 26 years, the information technology industry's economic footprint has extended by more than seven times. Over the same period, direct employment in the information technology sector increased at an average growth rate of around 17%. Software and services exports earn, on average, about three times greater than the other three major services of India's current account of the balance of payment.Originality/valueThis study focuses on originality in examining the role of IT exports in India's macro-economic indicators economic reforms of the 1990s and also explores the historical developments of various dimensions of IT exports and domestic growth in India. All the work has been done in original by the authors, and the work used has been acknowledged properly.

As the goal of the study, one of the relevant modern problems of rural areas of the Republic of Kazakhstan is noted ensuring sustainable economic development of agritourism, which should become one of the key drivers of the regional economy. Objectives – to study aspects of sustainable agricultural tourism based on the example of the North Kazakhstan region. Results – the scientific points of view of Kazakhstani and foreign authors, offering solutions to issues related to the efficiency and feasibility of agritourism ecosystem are presented; key indicators and methodological approaches to assess the promotion of agritourism are identified; a matrix of the main directions for further expansion of the tourism industry in North Kazakhstan was developed; econometric dependences reflecting the dynamics of the number of agrotourists in the region in 2016-2020 are shown. Based on the calculation of autocorrelation coefficient of the residuals and the average approximation error, a conclusion was made about the optimal use of the constructed dependencies in the economy in order to ensure the sustainable development of agricultural tourism sector in the region. The research methodology is associated with the analysis that characterizes the introduction and acquaintance with the peculiarities of rural life, the activities of peasant farms. In the opinion of the authors, the conclusions will largely help to achieve the stated goals and objectives. Researchers are convinced that particularly rural tourism business that should become one of the main imperatives for the development of a modern village in the republic, contributing to a sustainable increase in the quality and standard of living of the population living in rural areas, raising the balance of payments and total exports, and increasing employment of rural residents, ensures food security of the country.

Central Bank operational frameworks can be challenged during times of severe financial stress. Typical of such an instance is where policymakers attempt to heavily manage or fix a domestic exchange rate whilst faced with balance of payments pressures. However, it is claimed to be impossible for policymakers to achieve both monetary independence and exchange rate stability if the domestic economy were to post a balance of payment surplus, otherwise known as the ‘impossible trinity’. The purpose of this paper is to investigate the European Monetary System crisis through the lens of Institutional Practice, that is the day‐to‐day operations of key institutions, such as the Central Bank, Treasury and commercial banks, with a view to demonstrate why global imbalances are able to occur and persist across the international monetary system. Through both a theoretical and an empirical appraisal, this paper shows how Central Banks in economies with a balance of payments surplus can circumvent the binding constraints of the trinity within their operational frameworks.

The aim of this study is to explore the empirical application of a previously unexplored procedure to systematically estimate and test the tenets of the balance of payments constrained growth (BOPC...

Bosnia and Herzegovina (BiH) used to be an attractive tourist destination, which existed within the former Yugoslavia, and experienced a real collapse of tourism development after the war in the 1990s. The recovery process required, above all, the establishment of general stability and harmonization of interests of three constituent nations. That is the reason why the focus on general economic and social progress has been present for years, and tourism as an economic branch has been placed on the margins of development plans. The subject of this research is tourism as a facilitator of the development of Bosnia and Herzegovina. The main aim is to present the direct and indirect contributions of tourism to the development of the national economy of Bosnia and Herzegovina. It required the collection of data using classical scientific research methods, and then processing using statistical techniques. The purpose is to provide the insight into the strength and direction of correlation between individual categories in the balance of payments through correlation regression analysis. In addition, the analysis of the impact of tourism on investment, employment and gross domestic product was performed. This paper answers the question whether tourism in Bosnia and Herzegovina stimulates economic development and whether economic development enables the development of tourism.

This paper presents a partial equilibrium model that integrates interest rate arbitrage with the balance-of-payments constraint to determine the real exchange rate. The sequential logic is the following: (i) carry-trade determines the term premium, with the spot rate showing greater volatility than the forward rate, (ii) uncovered interest rate parity determines the spot rate based on the real exchange rate consistent with a financial constraint, defined as a stable ratio of foreign reserves to foreign debt; and (iii) the trade balance consistent with the financial constraint determines the long-run real exchange rate for a given ratio of domestic to foreign income.

The impact of demand-side factors and rapid structural changes have largely been ignored in explaining the economic growth of Vietnam. This paper employs the multisectoral balance-of-payments constrained economic growth model to capture the influence of structural changes on the exports and economic growth of Vietnam over the period 1997–2016. Based on the estimates for the sectoral income elasticities of demand for exports and imports obtained from autoregressive distributed lag models, this paper argues that it is not relative prices but income that has played a significant role in Vietnam’s economic growth, the income elasticities of demand for exports have grown faster than those of demand for imports, and the weight of exports has significantly moved from primary to high-technology products.JEL Classification: E12, F43, O53

This paper aims at estimating the impact of Quantitative Easing (QE) implemented by the ECB on external assets and liabilities recorded in the International Investment Position (IIP). Indeed, monetary policy affects the prices of securities and exchange rates, as well as international capital flows. These movements affect the IIP and can trigger important global imbalances and financial stability issues. Our analysis focuses on France. We find that QE affected all the items composing its IIP. Announcements played a stronger role compared to amounts purchased. We also decompose changes in the IIP into flows and valuation effects and show that the latter was the most reactive to the programme. Finally, we quantify the overall effect by establishing counterfactual scenarios in the absence of QE. The strong impact observed initially was rapidly counterbalanced; suggesting an over-adjustment phenomenon at the beginning of the programme.

The paper presents a simple Stock-Flow Consistent open economy model with flexible exchange rates. It can reproduce the same dynamics and results of the flexible exchange rates ‘benchmark’ model by Godley and Lavoie [2007b. Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth. London, UK: Palgrave MacMillan]. The latter is considered the ‘centre of gravity’ of SFC open economy literature. Yet the new model uses only one-third of the equations of the original one and features a different mechanism of determination of the exchange rate. Its small size and its flexibility make the model suitable both for didactic purposes and for extensions with further building blocks to address a variety of research topics.

Exchange Rate is one of the economic indicators in the Philippines. It is the value of the nation’s currency versus the currency of another country or economic zone. This study aims to forecast the monthly Exchange Rate (y) of the Philippines from November 2018 to December 2023 using Multiple Linear Regression and Multi-Layer Feed Forward Neural Network. The researchers investigate the behaviour of each independent variables – Inflation Rate (x1), Balance of Payments (x2), Interest Rate (x3), Producer’s Price Index (x4), Export (x5), Import (x6), Money Supply (x7), and Consumer’s Price Index (x8) from Philippine Statistics Authority (PSA) starts from January 2007 up to October 2018. Multiple Linear Regression (MLR) was used to identify significant predictors among these independent variables. The Exchange Rate (y) had undergone first difference transformation. Upon running the regression analysis, it has concluded that only two independent variables are significant predictors, namely: Balance of Payments (x2) and Import (x6). Through these significant predictors, the MLR model was formulated. On the other hand, Multi-Layer Feed forward Neural Network (MFFNN) was also used to determine the forecasted values of Exchange Rate (y) for the next five years (2018-2023) given the said independent variables and obtained a model. The researchers compared the model of Multiple Linear Regression and Multi-Layer Feed Forward Neural Network by evaluating the forecasting accuracy of each method.It was concluded that Multi-Layer Feed forward Neural Network is the best fitting model for forecasting the Exchange rate (y) in the Philippines. This paper will serve as a tool of awareness for the government to forsee the trend of Exchange Rate in the Philippines on the next five years (2018-2023) for Monetary Policy making and to prevent the possible depreciation of peso vs. dollar.

Now a days, Foreign Direct Investment (FDI) is a buzz word for the developing countries not only to strengthen their Balance of Payment (BOP) account but also to accelerate overall economic growth of the countries. It also helps to generate employment in the country with new knowledge and knowhow. Naturally, it is very important for the policy makers of the respective countries to identify the key determinants which attracts more FDI and fine tune their policies to take comparative advantage in the competitive world. In this study the researchers tried to identify the important determinants of inflow FDI in Indian context. It is observed that some prominent determinants are existing to attract more FDI. However, government policies and restrictions are impediments to such inflow and these are regarded as moderating variables in this study. The statistical result also shows that services sectors and computer hardware and software are the significant areas where determinants of Foreign Direct Investment (FDI) inflows in Indian economy growth

The Brazilian economy struggled throughout the 1980s with a severe balance of payments crisis and high inflation, interrupting thirty years of rapid growth and structural change. Simultaneously, Br...

Research background: Poland is a significant recipient of intercompany loans as a part of foreign direct investment (FDI) debt instruments reported in the Balance of Payments. Most of them come from the developed West European countries ? Netherlands, Luxembourg, France, Germany, and Belgium. Igan et al. (2020) confirm debt-based FDI inflows to emerging markets had a higher impact on the industries? growth in the pre-crisis period 1998?2007 than after (till 2010). Purpose of the article: We aim to identify withholding tax (WHT) impact on intercorporate loans inflow to Poland and analyse the relationship between trade credit and intercompany loans to assess the importance of the profit-shifting role of FDI after 2010. Methods: To reflect the impact of withholding tax and trade credit on inter-company loans (inward debt-based FDI) in 2011?2017 to Poland, we use Arellano-Bond and random effects panel model estimators. The estimated specification is derived from the knowledge-capital model and includes two types of capital: human and physical. Findings & value added: We show that WHT on interests reduces profit-shifting by multinational companies? intercompany lending to Poland. But intercompany loans are positively related to foreign trade credit. Unlike in the case of total FDI inward to Poland (Cieślik, 2019), we identified that vertically integrated multinational enterprises are more likely to provide loans to Polish firms. This study is the first to confirm that withholding tax of interests reduces international profit-shifting by FDI and to provide evidence on the relation-ship between foreign trade credit and intercompany loans provided by multi-national companies.

The article considers the structure of components of the country’s investment security as part of ensuring general national economic safety. It was determined that the Investment component of economic security takes a determining place in the country’s economic security, while the provision of the economic security and implementation of the national interests should form the investment policy of the country. The authors identified styles and models of the Investment behavior under the condition of achievement or ignoring of the proper level of investment security, they formed the directions for adherence and monitoring of the country’s investment security. They supplemented the classification parameters of types of the country’s investment security. They also built a model of the integrated investment security provision at different managerial levels of the national economy; they proved the availability of a stable interrelation and interdependence between the components of the country’s investment security. The country’s investment security was proved to be considered as the achievement of the investment level, which makes it possible to please current investment needs of the national economy in terms of volume and structure of investments, with the consideration of efficient use and repayment, the optimal correlation between volumes of domestic and external investments, foreign investments in the country and domestic ones abroad, the formation of the favorable national balance of payments.

During a decade of stagflation in the 1970s, a sea of changes on the interna-tional stage led to major macroeconomic imbalances that gave central bankers a different role in relation to governments and policy-makers. In Europe, this coin-cided with the relaunching of the project for European integration. The Italian case shows how governments and central bankers interacted in shaping adjustment strategies. The Bank of Italy had a pivotal role in shaping the country's economic policies, relying on its capacity for economic analysis. The adjustment strategy formulated in the "Pandolfi Plan" of 1978 was conceived largely by an economist at the Bank of Italy, Tommaso Padoa-Schioppa. Further developing analyses conducted jointly with Franco Modigliani the previous year, the plan focused on the macroeconomic effects of high labour costs in the wake of a full ("100% and plus") wage indexing and rising government deficits. The policy proposal revolved around a few targets, namely investments and economic growth, and an explicit principle of fairness in the labour market. The Pandolfi Plan pledged to Italy's en-during participation in the European integration process by combining economic development with adhesion to the "European choice", which meant joining the European Monetary System (EMS). The European agreements governing EMS membership replaced the standard external economic constraints, i.e. the balance of payments and exchange rate, with a new kind of semi-legal external constraint ingrained in the governance structure of the European Community. The nature of this new semi-legal external constraint as a fiscal discipline mechanism eventually emerged more clearly with the Maastricht Treaty.

This study seeks to ascertain whether the Multi-Sectoral Balance of Payments Constrained Growth model is suitable to explain Nigeria's growth experience from 1981 to 2018. The paper explicitly incorporates the effects of intermediate imports and relative prices into the analysis. We employ the autoregressive distributed lag econometric procedure for the analysis. The outcome of the study shows that the Multi-Sectoral Balance of Payments Constrained Growth model correctly predicts Nigeria's growth path. It was found that manufactured export is one of the main determinants of the intermediate import demand function. Considerable reliance on this type of import to produce final exports could reduce the gains from trade, thus adversely affecting the GDP growth of the economy compatible with the BoP constrained growth model in the long run.

Theoretical and methodological foundations of institutional policy define reduction of uncertainty in activities of organizations and individuals as the main task of financial institutions by establishing stable mechanisms of interaction between participants in public relations. Coordination of economic interests at all levels is performed by both formal and informal institutions, while creation and modification of formal institutions largely depends on the informal influence of representatives of various social macrogroups. The list of the most important macroeconomic institutions includes: institutions of macroeconomic regulation; market institutions; monetary institutions, fiscal institutions, investment institutions; institutions of law; institutions for regulation of foreign economic activity. Whereas, the importance and peculiarities of financial policy in the institutional system determine the special importance of financial institutions, primarily in implementation of measures aimed at ensuring sustainable social and economic development. The paper dwells on practice of functioning of the financial system of Belarus. The value of a unique mega-regulator for financial transactions, exchanging assets and risks has been determined. It has been substantiated that creation of such a supranational body is possible subject to formation of an integrated financial market for the EAEU member states. Impact of the main instruments of financial policy (Belarusian ruble exchange rate, refinancing rate, money supply, required reserves of second-tier banks, monetary policy stability, informal influence measures, agreements, transactions, open market operations, tariffs, duties, restrictions, decrees, orders, guarantees) on the national economy has been considered, proposals for improving financial instruments within the framework of the current institutional mechanism has been substantiated. Use of the proposed results and proposals in practice for improving institutional mechanisms, including a range of official regulations and informal institutions, will promote improvement of the situation with the balance of payments, assessment of fiscal risks and problem assets.

Multinational enterprises apply aggressive tax planning (ATP) to optimize global tax liability usually by combining parameters of different tax systems in both national jurisdictions and double tax treaties. At a macroeconomic level, the implementation of various optimization schemes affects the given values of the balance of payments. By conducting econometric analysis, the present paper examines the extent to which selected optimization schemes can be traced in the Czech Republic's balance of payments. The results show that payments for counselling services and royalties flow mostly to locations with low corporate tax rates, which may suggest an attempt to shift the tax base. Moreover, dividend and interest yields tend to move to countries with high foreign direct investments (FDIs) and balanced ratios between FDIs received and made, indicating that they are only conduit (transit) countries through which profits are transferred to another destination.

This study aims to analyze the effect of the clearance tax on the level of public debt and the deficit of the balance of payment in Palestine for the years 1996-2019. Data was collected from the Palestinian Monetary Authority and the Ministry of Finance. The study applies the ordinary least square to test the effect of the clearance tax on the public expenditures (current and budgeted) from one side and on the balance of payment from the other side. Findings show that current expenditures and budget deficit are positively associated with the clearance tax while budgeted expenditures are not correlated with the reported tax. The study stresses on the importance to restructure the economic agreements with Israel, more specifically the Paris Economic Protocol. The study concludes with important recommendations. Palestinian authorities and relevant policymakers should reinforce their strategies to improve the tax system and the efficiency of tax collection. They should diversify their revenues, rationalize their spending, and undertake new projects to reduce the public debt level.

Ülke Kredi Derecelendirme notları finansal piyasalarda büyük bir öneme sahiptir. Derecelendirme notlarının piyasada fon ihtiyacı olanlar ve yatırımcılar arasında ortak bir dilde bilgi aktarımını sağlama fonksiyonu bulunmaktadır. Ülke Kredi Derecelendirme notları, ülkelerin borçlanma maliyetlerini etkilemektedir. Aynı zamanda yabancı yatırımcıların ve fonların ilgili ülkede yatırım yapma kararlarını etkilemektedir. Ülke Riski Derecelendirme yaklaşımlarında; ödemeler dengesi, iç ekonomik göstergeler, dış varlık verileri, finansal sektörün durumu, gelir ve nüfus verileri, kamu maliyesi verileri değerlendirmelerde kullanılmaktadır. Bu çalışmada, iç ekonomik veriler inceleme kapsamına alınarak ülkelerin temerrüt olasılığına olan etkileri araştırılmıştır. Çalışmada lojistik regresyon yöntemi kullanılmıştır. Ülke temerrüt verileri incelenerek kategorik hale getirilmiştir. GSYIH verileri, döviz kuru ve tüketici fiyatları artış oranı verilerinin temerrüt olasılığını açıklama gücünün yüksek olduğu görülmüştür. Çalışmada G20 ülkeleri kapsama alınmış ve 2008-2017 yılları arası incelenmiştir. Çalışma sonucunda, dolar kurundaki artışların ve bu artışlar nedeniyle USD cinsinden GSYIH’nın azalması ülkelerin temerrüt olasılığı artıran bir etken olmuştur., Sovereign credit ratings have gained importance in financial markets. Sovereign ratings have the function of providing necessary information in a common language between market participants who need funds and investors. Sovereign credit ratings affect countries’ borrowing costs. Additionally, ıt affects the decisions of foreign investors and investment funds, to invest in the related country. In sovereign credit risk approaches, various data is used for assessment such as balance of payment, domestic economy indicators, external economy, financial sector status, income and population data, and public finance data. In the scope of this study, the relation between domestic economy indicators and the probability of default are investigated. The logistic regression method was used in the study. The Sovereign default data is analyzed and categorized. It was observed that GDP data, exchange rate, and consumer price growth rate are high explanatory variables that explain the probability of default. G20 countries were included in the study and examined between the years 2008-2017. As a result of the study, the increase in USD exchange rate and a decrease in the GDP in USD have been a factor that increases the probability of default for countries.

As the last century is witnessed that the thinking of employees and corporates have changed drastically due to the evolution of occupation and technology enhancement. Freelancers have changed a mindset of individuals to take initiative for their own business instead to work as a slave for a corporate. Due to the influencing thoughts of an individual, it directly impacts on country’s economy. Now a huge portion of economic growth depends on remittances (inward) against I.T (information technology) services, consultancy, and export of software and I.T packages. So, therefore a lot of dependency on economic growth be contingent on freelancer perception of remittance policies. So, the survey was conducted among freelancers and respondents’ responses were tested through SmartPLS. Right now, most of the developing countries encourage youth to I.T because it has several positive consequences either directly (Foreign Direct Investment, Balance of Payment and Reserves) or indirectly (Employment and Growth Opportunities of SMC).

This study investigated the relationship between domestic credit and net foreign assets in the long run through the monetary approach to the balance of payments (MABP) for a panel of five selected MENA countries (Jordan, Egypt, Algeria, Morocco, Tunisia) during the period extending from 1980 to 2019. It employed the second-generation methods in panel data analysis to deal with cross-sectional dependence (CSD) and slope heterogeneity. According to the panel results for Common Correlated Effects Mean Group (CCEMG) and Augmented Mean Group (AMG) estimators, domestic credit has a significant negative impact on net foreign assets in the long run. The country-specific results for the AMG estimator strongly supported the MABP propositions in Jordan, Morocco, and to a lesser extent, in Egypt and Algeria. As for Tunisia, the results do not conform with what MABP predicted. The implicit conclusion is that an increase in domestic credit causes a continuous loss of net foreign assets in Egypt, Jordan, Morocco, and Algeria. Thus, monetary authorities should formulate an appropriate monetary policy to control the domestic credit creation as a mechanism toward improving the balance of payment (BOP) position. Furthermore, the policymakers should concentrate on other policy instruments to correct the BOP deficit rather than focusing on monetary tools, especially in Tunisia, where the findings showed that BOP was not a monetary phenomenon.