Real effective exchange rate dynamics in Morocco: Exploring Balassa-Samuelson effect under capital account liberalization

Growth Effects of Exchange Rate Regimes and Capital Account Liberalization

Empirical growth equations are typically explained by (i) the history of the exchange rate regimes, (ii) capital market liberalization regimes, and (iii) actual balance of payments crises. The literature on the effects of policy switches on growth typically ignores the effect of policy on the likelihood of crises, and, in turn, the effect of crises on growth. It ignored a key explanatory variab...

Productivity, the Terms of Trade, and the Real Exchange Rate: The Balassa-Samuelson Hypothesis Revisited

effect of sector productivity on iran's real effective exchange rate (a test on balassa-samuelson effect)

this study has investigated the long-run and short-run effects of relative productivity on real exchange rate using annual time series data of iran and its major trade partners over the period 1980-2005. to analyze such effect which refers to the balassa-samuelson effect, this research uses auto-regressive distributed lags (ardl) method, to deal with dynamics of the relationship between product...

Capital Account Liberalization, Real Wages, and Productivity

For three years after developing countries open their stock markets to inflows of foreign capital, the average annual growth rate of the real wage in the manufacturing sector increases by a factor of seven. No such increase occurs in a control group of developing countries that do not liberalize. The temporary increase in the growth rate of the real wage permanently drives up the level of avera...

Balassa-Samuelson Effect in the CEECs?

This paper offers a detailed assessment of the Balassa-Samuelson (BS) effect in eight Central and Eastern European countries (CEEC8). Several features distinguish this study from others: First, we investigate a variety of specifications of extended models. Nonhomogeneity of wages, deviations from PPP in tradables and demand side variables are found to importantly contribute to explain inflation...