The Path to Sustainable Development through the Splitting of the Foreign Exchange Reserves

Andrew Lewis

Journal of Management and Sustainability, 2016, vol. 6, issue 2, 97-102

Abstract: This paper presents a theoretical equation that when used shows the impact that the foreign exchange reserves have on the overall health of an economy such as the case with Jamaica. The equation also has variables that demonstrate this case assuming no ¡°official and unofficial¡± or ¡°formal and informal¡± sectors. If there is a definitive split between both sectors so that the unofficial economy can make an impact on the formal economy, the splitting of the reserves can provide support for the ¡°informal economy¡± as this sector can catalyze the formal economy potentially providing higher economic growth. It is shown through statistical data that the correlation can have an impact if the economy is split in two to show the positive relationship this can have on the Jamaican economy as a whole.

Keywords: informal sector; exchange rate; economic growth; economic development; Jamaica; fiscal multiplier; IMF; Central Bank; Bank of Jamaica; Shadow Economy; GDP; GDP PPP; GDP Nominal; economics equation; growth rate; Rafael Correa; budget deficit; developing economy; Jamaican dollar; American dollar (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ccsenet.org/journal/index.php/jms/article/view/59395/31856 (application/pdf)
http://www.ccsenet.org/journal/index.php/jms/article/view/59395 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:jmsjnl:v:6:y:2016:i:2:p:97-102

Access Statistics for this article

More articles in Journal of Management and Sustainability from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().