Footnote:
In: South African Journal of Economics, 83(2), p.269-28, 2015
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 16, 2014 erstellt
Description:
In this paper we develop an analytical general equilibrium framework to measure the foreign exchange premium and the premium for non-tradable outlays for a country. The framework allows us to capture in a consistent manner the impacts of the sourcing of funds and their expenditure on tradable and non-tradable goods and services of investment projects. An application of the model is carried out for 20 countries in Africa. The results show that the foreign exchange premiums range from 2.50% to 9.25% and the premium for non-tradable outlays from −1.00% to 2.40%. The empirical values depend on a number of factors, including the indirect taxes, production subsidies and international trade distortions of a country. These premiums should be incorporated into the economic evaluation of investment projects