Productivity and the New Zealand Dollar: Balassa-Samuelson tests on sectoral data
AbstractThe Balassa-Samuelson hypothesis suggests that countries with a weak relative productivity performance should, over time, see a low or falling real exchange rate. This note uses detailed sectoral data to test the hypothesis over the period 1978-2006 and also fails to find any evidence of the expected effect.
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Bibliographic InfoPaper provided by Reserve Bank of New Zealand in its series Reserve Bank of New Zealand Analytical Notes series with number AN2013/01.
Length: 21 p.
Date of creation: Jun 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-EFF-2013-07-15 (Efficiency & Productivity)
- NEP-OPM-2013-07-15 (Open Economy Macroeconomic)
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