scholarly journals Economic Growth and Real Exchange Rate: An Overview of the Balassa-Samuelson Hypothesis in Asia

10.3386/w5979 ◽  
1997 ◽  
Author(s):  
Takatoshi Ito ◽  
Peter Isard ◽  
Steven Symansky
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Samuelson Hypothesis

scholarly journals The Impact of Real Exchange Rate Undervaluation on Economic Growth: Evidence from Panel Cointegration Approach

2020 ◽  
Author(s):  
Mehdi Seraj ◽  
Cagay Coskuner ◽  
Seyi Saint Akadiri ◽  
Negar Bahadori
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Developing Economies ◽  
Panel Cointegration ◽  
Least Square ◽  
Ordinary Least Square ◽  
Developed Economies ◽  
Periodic Data ◽  
The Impact

Abstract This study revisited Dani Rodrik (2008) work on real exchange rate undervaluation and economic growth by using the Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS). This research, to the best of authors' knowledge, is the first to use FMOLS and DOLS approach to empirically evaluate Rodrik work on the real exchange rate and economic growth using a Panel periodic data (six sets of five years) of 82 countries throughout 1990 to 2018. We used the Balassa Samuelson method to estimate the predicted real exchange rate and real exchange rate undervaluation. Finally, the study is in support of Rodrik conclusion that, real exchange undervaluation has a significant impact on the economic growth of the developing economies and statistically insignificant in the developed economies.

Questioning the effect of the real exchange rate on growth: new evidence from Mexico

2021 ◽  
Vol 9 (2) ◽  
pp. 253-269
Author(s):  
Florencia Médici ◽  
Augustín Mario ◽  
Alejandro Fiorito
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Public Expenditure ◽  
Institutional Arrangements ◽  
Relative Price ◽  
The Real ◽  
Empirical Results ◽  
New Evidence

This study provides new evidence showing that the real exchange rate (RER) does not play an important role in the growth of Mexican GDP. Economic growth is not an automatically predetermined result of relative price correction, and it is important to consider distinctive aspects of national institutional arrangements (fiscal and monetary, for example) for understanding theoretical causality of demand. The empirical results show public expenditure is an overlooked variable in regressions where the exchange rate affects product growth. After incorporating public expenditure, the RER impact on growth becomes insignificant. For its part, public expenditure has a positive and significant effect on GDP in the long term. The RER does not lead to greater GDP since exports are not stimulated through price.

scholarly journals Does real exchange rate undervaluation really promote economic growth?

2020 ◽  
Vol 52 ◽  
pp. 408-417 ◽  
Author(s):  
Rafael S.M. Ribeiro ◽  
John S.L. McCombie ◽  
Gilberto Tadeu Lima
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate

scholarly journals China's economic growth and its real exchange rate

2008 ◽  
Vol 1 (2) ◽  
pp. 123-145 ◽  
Author(s):  
Rod Tyers ◽  
Jane Golley ◽  
Bu Yongxiang ◽  
Iain Bain
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate
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