Measuring persistence in nominal exchange rate: Implications for Angola’s entrepreneurship and business development

The purpose of this paper is to measure the degree of persistence in the Kwanza to US Dollar exchange rate. First, our results indicate that nominal exchange rates both in levels and in first differences are I(0), thus implying that the relative purchasing power parity hypothesis for Angola is not rejected. Secondly, we find a significant degree of persistence in both the formal and informal nominal exchange rates. Thirdly, the degree of persistence in the official market is significantly lower than in the formal market, while In first differences, persistence in the official exchange rate is substantially higher than in the informal exchange rate. Lastly, we could not find strong evidence that persistence has changed in levels throughout the sample period. By contrast, there is significant evidence that persistence in first differences has consistently increased after September 2003. These results have important policy implications as the National Bank of Angola is preparing to change its monetary and exchange-rate policy focus to a more inflation-targeting regime and to a more a flexible (or low-managed) exchange-rate regime.

Crafting Sustainable Development Solutions: Frugal Innovations of Grassroots Entrepreneurs

A shift in the entrepreneurial landscape is taking place brought about by grassroots innovators with little formal education and technological knowhow, living and working in penurious environments. This research represents an emerging third wave of literature on Bottom of the Pyramid innovation, where products are offered for and by the underserved. Using primary and secondary data derived from four cases of grassroots entrepreneurs in the Indian Subcontinent, the study explores the phenomenon where resource scarce entrepreneurs craft solutions that are environmental friendly, with low overall ownership costs, and use locally available material. We argue that the grassroots phenomenon can be fruitfully exploited to achieve the new Sustainable Development Goals proposed by the UN as a post-2015 strategy for the future of global governance. These innovations might have a tremendous impact not only in terms of serving unmet and ignored consumer needs, but also longer term impacts through enhanced productivity, sustainability, poverty reduction and inclusion promotion.