AN ANALYSIS OF THE EFFECT OF PURCHASING POWER PARITY ON NATIONAL COMPETITIVENESS AND HUMAN DEVELOPMENT IN 21 EUROPEAN COUNTRIES
Journal Title: Revista Economia Contemporana - Year 2018, Vol 3, Issue 1
Abstract
The purchasing power parity is an indicator that facilitates the analysis of price differences between national economies, enabling comparisons in terms of level of development. In order to test this scientific hypothesis, we used the Big Mac Index to assess the purchasing power of the national currencies of 21 European countries between 2011 and 2017. We used statistical correlation to analyse the relationship between the strength of the national currency and the competitiveness of the national economy, on one hand, and the relationship between the strength of the national currency and the level of human development achieved by the countries included in the study, on the other hand. The two statistical correlations generated positive results, thus validating the initial hypothesis. All the correlation indices recorded positive values, higher than 0,5, throughout the entire period of analysis, supporting the idea that the strength of the national currency does influence the competitiveness and level of human development of the studied countries.
Authors and Affiliations
Andreea-Daniela GANGONE, Mariana-Cristina GĂNESCU, Mihaela ASANDEI
Keywords
Related Articles
- EP ID EP655104
- DOI -
- Views 193
- Downloads 0
THE ROLE AND FUNCTION OF PERSONAL REMITTANCES OF UKRAINIAN AND MOLDAVIAN LABOUR MIGRANTS FOR DEVELOPMENT OF UKRAINE AND MOLDOVA
This paper presents the results of research concerning the personal remittances of Ukrainian and Moldavian labour migrants from abroad during the period 2000-2016, using data from the World Bank. The paper also compares...
THE MANAGEMENT OF GREEN CERTIFICATES IN ROMANIA
Green certificates remain a sensitive issue both for Romanian authorities, but especially among producers of renewable energy that thought they would benefit from the authorities' support for a long time. Thanks to a par...
SUCCESSES AND FAILURES IN REFORMS IMPLEMENTATION PROCESS IN THE REPUBLIC OF MOLDOVA
A brief look on current socio-economic situation of the country denotes its tedious condition as a result of many years of reforms which have come across and which have not been successfully at all. The greatest differen...
THE GLOBAL TRENDS OF INVESTMENTS DURING LAST YEARS
The global volume of transactions in terms of investment in 2015 decreased compared to the previous year by 3% reaching 689 billion USD. At the same time, the transaction volume in 2015 increased by 5% reaching 748 billi...
RELEVANCE OF ECONOMIC-FINANCIAL DIAGNOSIS IN SUSTAINABLE DEVELOPMENT OF BUSINESS
The analysis of the economic and financial activity is a very important and very complex component of the process of substantiating and realizing the strategy of an organization, because with it, it gets a complete pictu...