Revista Internacional de Economía y Ciencias de la Gestión

This paper examines effects of exchange rate volatility proxied by GARCH model on Canadian total exports, exports to the USA, total imports, and imports from the USA and used monthly data from 1997M04 to 2017M08. To estimate long-run relationship ARDL co-integration bound test technique has been used. The results conclude that long-run equilibrium relationship does exist between exchange rate volatility and Canadian total exports, exports from the USA, total imports, and imports from the USA. Further results indicate that exchange rate volatility has a significant inverse long-run relationship with total exports (=-20394705), exports to USA (=-11,195,316), and total imports (=-144,000,000), but an insignificant inverse relationship with Canadian imports from the USA. Further, vector error correction mechanism (VECM) confirms long-run equilibrium relationship between variables. The absolute magnitudes of error correction terms 2.8098, 4.5239, 0.3818, and 0.5306 represent speeds of adjustment for exchange rate volatility, and Canadian total exports, exports to the USA, total imports, and imports from the USA, respectively, in case of any departure from long-run equilibrium. In short term Toda and Yamamoto test finds bi-directional between exchange rate volatility and Canadian total exports, exchange rate volatility and exports to the USA, exchange rate volatility and Canadian total imports, and exchange rate volatility and imports from the USA. Findings of the current study have very important implications for policymakers to design such policies that can establish both short term and long-run equilibrium relationship between exchange rate volatility, exports and imports adjusting short-term exchange rate and trade deficit shocks to avoid violation of international budget constraints. 

The problems related to Natural Resources and Environmental Goods has been the main topic of discussion in every Conference and Panel discussions as worldwide and country level. Among all, this study focused on Conservation of Gibe Sheleko National Park, which is very threated by society. For this reason this study examined determinant of Household’s willingness to pay or labor force contribution for conservation of the park. Contingent valuation method used to estimate household’s WTP for the conservation of the park in terms of money as well as labor force contribution; seemingly unrelated bivariate probit model was used to analyze the determinants of households’ WTP and to estimate the mean WTP which obtained from Double Bounded Dichotomous choice (DBDC). Results of the model shows that age of the household head, income related to park resource, distance of home to park and training were negatively and statistically significant. Whereas marital states, family size, household income Occupation of household’s TLU and frequent contact were positive and statistically significant. The study also show that the mean willingness to pay estimated from the Double Bounded Dichotomous Choice formats was computed at 98.72 ETB and 43.8 labor force days per annum per household, respectively. The respective total aggregate value of conservation was computed to 395336.28 ETB and 175331.4 labor force day per annum, respectively. When we convert the labor force contribution in to local labor wage price on average one person daily laborer wage is 60 ETB then the aggregation labor force contribution is 10,519,890 ETB per annum. To close the implication is that any policy direction towards conservation of the parks and other natural resource should integrate the community at large.