Relative labour productivity and the real exchange rate in the long run
Read Online
Share

Relative labour productivity and the real exchange rate in the long run evidence for a panel of OECD countries by Matthew B. Canzoneri

  • 504 Want to read
  • ·
  • 34 Currently reading

Published by Centre for Economic Policy Research in London .
Written in English


Book details:

Edition Notes

StatementMatthew B. Canzoneri, Robert E. Cumby and Behzad Diba.
SeriesDiscussion paper series / Centre for Economic Policy Research -- No.1464
ContributionsCumby, Robert E., Diba, Behzad T., Centre for Economic Policy Research.
ID Numbers
Open LibraryOL17232984M

Download Relative labour productivity and the real exchange rate in the long run

PDF EPUB FB2 MOBI RTF

Relative labor productivity and the real exchange rate in the long run: evidence for a panel of OECD countries Matthew B. Canzoneri, Robert E. Cumby, Behzad Diba* Department of Economics,Georgetown University,Washington,DC ,USA Received 16 December ; received in revised form 6 August ; accepted 17 September Abstract. Canzoneri, Matthew B., Robert E. Cumby and Behzad Diba. "Relative Labor Productivity And The Real Exchange Rate In The Long Run: Evidence For A Panel Of OECD Countries," Journal of International Economics, , v47(2,Apr), citation courtesy ofCited by: Get this from a library! Relative labor productivity and the real exchange rate in the long run: evidence for a panel of OECD countries. [Matthew B Canzoneri; Robert Cumby; Behzad Diba; National Bureau of Economic Research.]. Canzoneri, Matthew B. & Cumby, Robert E. & Diba, Behzad, "Relative labor productivity and the real exchange rate in the long run: evidence for a panel of OECD countries," Journal of International Economics, Elsevier, vol. 47(2), pages , April.

  The existence of labor market frictions affects the response of employed workers’ wage to changes in relative productivity, but it is not clear how differences in labor market institutions across sectors and countries can affect the relationship between the real exchange rate and productivity . Abstract. As in many other aspects of empirical exchange rate research, it has been difficult to detect robust evidence for the Balassa-Samuelson effect, which posits a relationship between the real exchange rate and the relative tradable/nontradable productivity differential (see for instance the remarks in Froot and Rogoff, ). The real exchange rate is a key relative price in international finance. Thus it is not surprising that so much attention has been lavished upon finding the determinants of this variable in both the short and long run. It is surprising that the empirical success in explaining movements in the real exchange rate has been so limited. Real exchange rate and productivity in China Sylviane GUILLAUMONT JEANNENEY *1 and Ping HUA* that, in the long run, the differences between the real exchange rates of Chinese provinces may be explained by the Balassa-Samuelson effect. the appreciation of the real exchange rate, namely the fall of the relative price of tradable goods, on.

state value () in the long-run () ranges from about 3% to 11%. The range depends on whether or not one allows for long-run change in the growth rate of the relative labor productivity of the tradable sector and general equilibrium effects (particularly the downward pressure on the real interest rate due to aging) as well as. BibTeX @MISC{Canzoneri96relativelabor, author = {Matthew B. Canzoneri and Robert E. Cumby and Behzad Diba}, title = {Relative labor productivity and the real exchange rate in the long run: evidence for a panel of OECD countries. NBER Working Paper no}, year = {}}. cointegration of the real exchange rate and the relative productivity variable for 14 OECD countries.2 Canzoneri, et. al. () nd cointegration between relative la-bor productivities and the real exchange rate for a panel of OECD countries. Lee and Tang () examine the e ect of sectoral productivity growth in a panel of OECD economies with. In the long run, exchange rates are determined by PPP (as described above) and relative differences in productivity, trade barriers, and import and export demand. As Country A’s price level and import demand increase, and as Country A’s productivity, trade barriers, and export demand decrease vis-à-vis another Country B, Country A’s.