The determination of the real exchange rate. The productivity approach

Journal Article

This paper explains deviations of exchange rates from purchasing power parity with the differences between countries of the relative growth rates of labor productivity between traded and nontraded sectors. Two cases are considered: Germany and Japan versus their respective major trading partners. The results show that the time series methodology yields a more favorable confirmation of the productivity differential model than the cross section regressions in the literature. © 1982.

Full Text

Duke Authors

Cited Authors

  • Hsieh, DA

Published Date

  • January 1, 1982

Published In

Volume / Issue

  • 12 / 3-4

Start / End Page

  • 355 - 362

International Standard Serial Number (ISSN)

  • 0022-1996

Digital Object Identifier (DOI)

  • 10.1016/0022-1996(82)90045-9

Citation Source

  • Scopus