Apertura, productividad y gasto agregado: un modelo de fundamentos del tipo de cambio real
AbstractThe Uruguayan economy has undergone over the past two decades an important growth process, together with a real appreciation of the domestic currency. This implied that the Real Exchange Rate (RER), calculated as TP/NTP, experienced important changes. From this phenomenon, this paper examines the evolution of the price competitiveness of the economy in light of the possible presence of "Balassa-Smuelson Effect" and a change in the economy's pattern of international integration, in a context of income growth and aggregate expenditure, through the methodology proposed by Johansen. Thus, we found a long-term relationship between the RER, the differential in labor productivity between the Uruguayan and U.S. economies, goods extra-regional exports and the economy's consumption. Furthermore, we found that the elasticities of RER to its long-term fundamentals lie in line with the theory and concludes that the equilibrium real exchange rate has fallen in the last two decades due to the movement of its fundamentals.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Instituto de Economía - IECON in its series Documentos de Trabajo (working papers) with number 12-19.
Length: 34 pages
Date of creation: Sep 2012
Date of revision:
Real exchange rate; Cointegration; Fundamentals;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-22 (All new papers)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andrés Dean).
If references are entirely missing, you can add them using this form.