Article history: Received 9 May 2012 Received in revised form 8 August 2013 Accepted 8 August 2013 Available online 27 August 2013 The paper examines the Canada–US real exchange rate since the early 1970s to test two popular explanations of the long-run real exchange rate based on the influence of sectoral productivities and commodity prices. The empirical analysis finds that both variables exe...

We examine the behavior of the real exchange rates of nine transition economies during the 1990s. We propose an empirical model rationalized on the basis of standard economic models in the tradition of Mundell-Fleming-Dornbusch and Harrod-Balassa-Samuelson, allowing explicitly for real interest rate differentials and (implicitly) for productivity differentials to have an impact on real exchange...

This paper investigates several key challenges faced by oil-rich countries regarding their economic growth and development. First, it discusses how to determine currency overvaluation for these (if any). To the overvaluation, real exchange rate (RER) is calculated Balassa–Samuelson effect estimated via a regression model. Next, study presents an empirical model assessing impact of oil rent on i...

We integrate three hitherto unconnected strands of economic theory; Lewis’ dual economy model, the Balassa-Samuelson model and, segmented labour market theory. With our hybrid model we investigate the implications of migration with labour market segmentation for an economy’s internal competitiveness, where migrants are concentrated in the secondary labour market and this segment supplies unskil...

This paper investigates the determinants of the real exchange rate using a panel of disaggregated data for the OECD countries. It also marries two literatures -one which uses panel data to measure relationships between changes in exchange rates to changes in the determinants, and the other which uses cointegration techniques to measure the long-run relationship between the level of the exchange...

This paper asks to which extent productivity shocks may account for real exchange rate and trade balance developments in the US in the second half of the 1990s. The analysis is based on a version GEM calibrated to analyze macroeconomic interdependence between the US and the rest of the world. The paper concludes that the Balassa-Samuelson effect of a permanent productivity shock in the tradable...

This study reexamines the evidence for the Balassa-Samuelson effect for the 1985-2007 period. Cointegrating relationships between the real exchange rate and productivity, real price of oil and government spending are estimated using the Johansen and Stock-Watson procedures. The findings show that for each percentage point in the US-Euro area productivity differential there is a three percentage...

This article introduces the data of the log real GDP per capita ratio and the log real exchange rate which are used to revisit the Balassa-Samuelson Hypothesis. We acquired the data from IMF and World Bank database, and provide the name and source of the data. All data are openly accessible. Besides, we describe the value of data as well as the method to process the data which can also be found...

According to Balassa-Samuelson hypothesis which explains real exchange rate movements by productivity differences between tradable and non-tradable sectors, an increase in the relative of sector leads a appreciation domestic currency. In this study, we analyze whether is valid employing recent panel data tehniques for set covering 25 OECD countries period 1990-2016. To aim, effect sectoral on e...