The Real Exchange Rate and Export Growth: Are Services Different?
AbstractWe consider the determinants of exports of services, distinguishing between modern and traditional services. We consider both the growth of export volumes and so-called export surges – periods of rapid sustained export growth. We ask whether the determinants of export growth rates and surges differ between merchandise, traditional services and modern services and whether developing countries are different. Our findings confirm the importance of the real exchange rate for export growth. We find that the effect of the real exchange rate is even stronger for exports of services than exports of goods; it is especially strong for exports of modern services. While the evidence of differential effects between advanced and developing countries is weaker, our results nonetheless suggest that as developing countries shift from exporting primarily commodities and merchandise to exporting traditional and modern services in the course of their development, appropriate policies toward the real exchange rate become even more important.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43358.
Date of creation: Nov 2012
Date of revision:
Real Exchange Rate; Exports; Services; Traditional Services;
Other versions of this item:
- Eichengreen, Barry & Gupta, Poonam, 2012. "The Real Exchange Rate and Export Growth: Are Services Different?," Working Papers 12/112, National Institute of Public Finance and Policy.
- Eichengreen, Barry & Gupta, Poonam, 2013. "The real exchange rate and export growth : are services different ?," Policy Research Working Paper Series 6629, The World Bank.
- F15 - International Economics - - Trade - - - Economic Integration
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-INT-2013-01-07 (International Trade)
- NEP-OPM-2013-01-07 (Open Economy Macroeconomics)
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