Fundamentals of Equilibrium Real Exchange Rate
This paper examines the evolution of price competitiveness of Uruguayan economy, assessing the presence of "Balassa-Samuelson Effect" and a change in the economy’s international integration, in a context of income and aggregate expenditure growth, through Johansen methodology. We found a l...
| Main Authors: | , |
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| Format: | Online |
| Language: | eng |
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Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba.
2012
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| Online Access: | https://revistas.unc.edu.ar/index.php/REyE/article/view/10251 |
| _version_ | 1811172127221481472 |
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| author | Benítez, Juan Mordecki, Gabriela |
| author_facet | Benítez, Juan Mordecki, Gabriela |
| author_sort | Benítez, Juan |
| collection | Portal de Revistas |
| description | This paper examines the evolution of price competitiveness of Uruguayan economy, assessing the presence of "Balassa-Samuelson Effect" and a change in the economy’s international integration, in a context of income and aggregate expenditure growth, through Johansen methodology. We found a long-term relationship between RER, the differential in labor productivity between Uruguay and U.S., extra-regional exports and total consumption. Furthermore, we found that the elasticities of RER to its long-term fundamentals are in line with the theory. We conclude that the decline in the equilibrium real exchange rate in the last two decades is due to the movement of its fundamentals. |
| format | Online |
| id | oai:ojs.revistas.unc.edu.ar:article-10251 |
| institution | Universidad Nacional de Cordoba |
| language | eng |
| publishDate | 2012 |
| publisher | Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. |
| record_format | ojs |
| spelling | oai:ojs.revistas.unc.edu.ar:article-102512022-04-06T22:32:35Z Fundamentals of Equilibrium Real Exchange Rate Fundamentos del Tipo de Cambio Real de Equilibrio Benítez, Juan Mordecki, Gabriela real exchange rate cointegration fundamentals C32 F31 F41 tipo de cambio real cointegración fundamentos C32 F31 F41 This paper examines the evolution of price competitiveness of Uruguayan economy, assessing the presence of "Balassa-Samuelson Effect" and a change in the economy’s international integration, in a context of income and aggregate expenditure growth, through Johansen methodology. We found a long-term relationship between RER, the differential in labor productivity between Uruguay and U.S., extra-regional exports and total consumption. Furthermore, we found that the elasticities of RER to its long-term fundamentals are in line with the theory. We conclude that the decline in the equilibrium real exchange rate in the last two decades is due to the movement of its fundamentals. Este trabajo examina la evolución de la competitividad-precio de la economía Uruguaya, evaluando la presencia del "Efecto Balassa-Samuelson" y un cambio en la inserción internacional de la economía, a través de la metodología de Johansen. Se encontró una relación de cointegración entre el TCR, el diferencial de la productividad laboral entre Uruguay y EE.UU., las exportaciones extra-regionales y el consumo total. Además se halló que la elasticidad del TCR a sus fundamentos está en línea con la teoría. Así se concluye que la disminución del TCR de equilibrio en las dos últimas décadas se debe al movimiento de sus fundamentos. Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. 2012-12-01 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://revistas.unc.edu.ar/index.php/REyE/article/view/10251 10.55444/2451.7321.2012.v50.n1.10251 Revista de Economía y Estadística; Vol. 50 No. 1 (2012); 59-92 Revista de Economía y Estadística; Vol. 50 Núm. 1 (2012); 59-92 2451-7321 0034-8066 10.55444/2451.7321.2012.v50.n1 eng https://revistas.unc.edu.ar/index.php/REyE/article/view/10251/12217 Derechos de autor 2012 Juan Benítez, Gabriela Mordecki http://creativecommons.org/licenses/by-nc-nd/4.0 |
| spellingShingle | real exchange rate cointegration fundamentals C32 F31 F41 tipo de cambio real cointegración fundamentos C32 F31 F41 Benítez, Juan Mordecki, Gabriela Fundamentals of Equilibrium Real Exchange Rate |
| title | Fundamentals of Equilibrium Real Exchange Rate |
| title_alt | Fundamentos del Tipo de Cambio Real de Equilibrio |
| title_full | Fundamentals of Equilibrium Real Exchange Rate |
| title_fullStr | Fundamentals of Equilibrium Real Exchange Rate |
| title_full_unstemmed | Fundamentals of Equilibrium Real Exchange Rate |
| title_short | Fundamentals of Equilibrium Real Exchange Rate |
| title_sort | fundamentals of equilibrium real exchange rate |
| topic | real exchange rate cointegration fundamentals C32 F31 F41 tipo de cambio real cointegración fundamentos C32 F31 F41 |
| topic_facet | real exchange rate cointegration fundamentals C32 F31 F41 tipo de cambio real cointegración fundamentos C32 F31 F41 |
| url | https://revistas.unc.edu.ar/index.php/REyE/article/view/10251 |
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