Work

The Real Exchange Rate and the Balassa–samuelson Effect: the Role of the Distribution Sector

Year: 2005

Type: article

Abstract: . This paper investigates the long‐run impact of the distribution sector on the real exchange rate. The main result is that an increase in the productivity and product market competition of the distribution sector with respect to foreign countries leads to an appreciation of the real exchange rate, similar to what a relative increase in the domestic productivity of tradables does. This contrasts with the result that one would expect by considering the distribution sector as belonging to the non‐tradable sector. One explanation may lie in the use of the services from the distribution sector in the tradable sector.

Source: Pacific Economic Review

DOI: 10.1111/j.1468-0106.2005.00259.x

Authors: Ronald MacDonald, Luca Antonio Ricci

Institutions: Ifo Institute for Economic Research, University of Strathclyde, Government of New Zealand, International Monetary Fund

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2052758717

FWCI: 5.569

Cites: 45

Cited by: 57

Related to: 10