Abstract

ONTANEDA JIMENEZ, Diego. The Harrod Balassa Samuelson effect and the role of demand: international evidence from panel data. Revista Economía y Política [online]. 2020, n.32, pp.95-132.  Epub July 08, 2020. ISSN 2477-9075.  https://doi.org/10.25097/rep.n32.2020.04.

The study jointly analyzes the impact of labor productivity and demand factors in determining the real exchange rate. For this, the formalization of the Harrod-Balassa-Samuelson effect (HBS) is taken as a starting point, and the demand factors are analyzed from the point of view of government spending and per capita income. The empirical analysis is carried out for the period 1970-2010 using fixed-effect panel data regression models and the Generalized Moment Model (GMM) for a sample of 40 countries from different regions. The results provide evidence in favor of the HBS effect and the importance of demand factors in determining the real exchange rate. The results have important policy implications to help countries improve competitiveness.

Keywords : Real exchange rate; Harrod-Balassa-Samuelson; demand; countries; panel data.

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