scholarly journals Real Exchange Rates and Sectoral Productivity in the Eurozone

2014 ◽  
Author(s):  
Martin Berka ◽  
Michael Devereux ◽  
Charles Engel
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Sectoral Productivity

scholarly journals Real Exchange Rates and Sectoral Productivity in the Eurozone

2018 ◽  
Vol 108 (6) ◽  
pp. 1543-1581 ◽  
Author(s):  
Martin Berka ◽  
Michael B. Devereux ◽  
Charles Engel
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Cross Section ◽  
Real Exchange Rates ◽  
Rate Variation ◽  
Productivity Shocks ◽  
Sectoral Productivity ◽  
Nominal Exchange Rates ◽  
Cross Country

We investigate the link between real exchange rates and sectoral TFP for eurozone countries. We show that real exchange rate variation, both cross-country and time-series, closely accords with an amended Balassa-Samuelson interpretation, incorporating sectoral productivity shocks and a labor market wedge. We construct a DSGE model to generate a cross section and time series of real exchange rates to compare to data. Estimates from simulated regressions are very similar to estimates for eurozone data. Our findings contrast with previous studies that have found little relationship between productivity and real exchange rates among high-income countries that have floating nominal exchange rates. (JEL E12, E23, E24, F31, F33, F43)

scholarly journals Real Exchange Rates and Sectoral Productivity in the Eurozone

2014 ◽  
Author(s):  
Martin Berka ◽  
Michael B. Devereux ◽  
Charles M. Engel
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Sectoral Productivity

scholarly journals Real Exchange Rates and Sectoral Productivity in the Eurozone

2014 ◽  
Vol 2014 (196) ◽  
Author(s):  
Martin Berka ◽  
◽  
Michael B. Devereux ◽  
Charles Engel ◽  
◽  
...  
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Sectoral Productivity

South Africa’s Trade Performance under Alternative Exchange Rate Regimes

2018 ◽  
Vol 10 (6) ◽  
pp. 261
Author(s):  
Romaine Patrick ◽  
Phocenah Nyatanga
Keyword(s):  
South Africa ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Exchange Rate Regime ◽  
Real Exchange Rates ◽  
Series Data ◽  
Growth Strategies ◽  
The Real ◽  
Real Price ◽  
Floating Exchange Rate

This study examined the effect exchange rates have on import and export volumes under alternative exchange rate policies adopted in South Africa over the period 1960 to 2017. Using quarterly time series data for the stated period, a log-linear error correction model is employed to estimate the country’s export and import elasticities, taking into account Gross Domestic Product (GDP), the real price of exports, the real price of imports and real exchange rates. Using the freely floating exchange rate regime as the base period, the study concluded that both export and import volumes are lower under a system of fixed exchange rates. Export and import volumes were also found to be lower under the dual exchange rate regime, relative to the freely floating exchange rate regime. In accordance with export-led growth strategies, exports were found to be higher and imports lower under a managed floating exchange rate regime. It is therefore recommended that South Africa revert to a more managed exchange rate regime, until the South African economy is developed to accommodate a freely floating exchange rate regime.

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