Arbeitspapier
The Balassa-Samuelson Hypothesis in Developed Countries and Emerging Market Economies: Different Outcomes Explained
This paper studies the Balassa-Samuelson hypothesis in two areas with strong differences in economic development, sixteen OECD countries and sixteen Latin American economies. Applying panel cointegration and bootstrapping techniques that solve for cross-sectional dependence problems in the data, we find that the second stage of the hypothesis, which relates relative sector prices with the real exchange rate, only holds in the Latin American area. The failure of the latter in the OECD countries as a whole is reflected in departures from PPP in the tradable sectors, and is probably due to segmentation between national tradable markets.
- Language
-
Englisch
- Bibliographic citation
-
Series: Economics Discussion Papers ; No. 2008-14
- Classification
-
Wirtschaft
Statistical Simulation Methods: General
Foreign Exchange
Price Level; Inflation; Deflation
- Subject
-
Balassa-Samuelson effect
bootstrapping techniques
cross-sectional dependence
economic development
exchange rate systems
Balassa-Samuelson Effekt
Wechselkurssystem
Entwicklung
Bootstrap-Verfahren
Vergleich
Entwicklungsländer
Schwellenländer
Aufstrebende Märkte
- Event
-
Geistige Schöpfung
- (who)
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García Solanes, José
Torrejón-Flores, Fernando
- Event
-
Veröffentlichung
- (who)
-
Kiel Institute for the World Economy (IfW)
- (where)
-
Kiel
- (when)
-
2008
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- García Solanes, José
- Torrejón-Flores, Fernando
- Kiel Institute for the World Economy (IfW)
Time of origin
- 2008
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