Real Exchange Rates In Developing Countries : Are Balassa-Samuelson Effects Present? /

There is little empirical research on whether Balassa-Samuelson effects can explain the long-run behavior of real exchange rates in developing countries. This paper presents new evidence on this issue based on a panel data sample of 16 developing countries. The paper finds that the traded-nontraded...

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Autor principal: Khan, Mohsin
Altres autors: Choudhri, Ehsan
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2004.
Col·lecció:IMF Working Papers; Working Paper ; No. 2004/188
Accés en línia:Full text available on IMF
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Sumari:There is little empirical research on whether Balassa-Samuelson effects can explain the long-run behavior of real exchange rates in developing countries. This paper presents new evidence on this issue based on a panel data sample of 16 developing countries. The paper finds that the traded-nontraded productivity differential is a significant determinant of the relative price of nontraded goods, and the relative price in turn exerts a significant effect on the real exchange rate. The terms of trade also influence the real exchange rate. These results provide strong verification of Balassa-Samuelson effects for developing countries.
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Descripció física:1 online resource (22 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students