The Harrod-Balassa-Samuelson Effect: A Survey of Empirical Evidence
Abstract
The paper surveys empirical evidence on the Harrod-Balassa-Samuelson effect. The survey encompasses the published empirical work on the phenomenon since its (re)discovery in 1964. In total, 58 empirical papers are examined within a specialized analytical framework. The body of empirical evidence is synthesized through four major elements. The analysis starts with the ongoing controversy related to the name of the theory. This is followed by a presentation of the evolution of the theoretical and econometric model. It ends with an analysis of the results of the surveyed empirical studies. Results of the survey indicate that growing body of evidence definitely points towards professional rethinking about the significance of the Harrod-Balassa-Samuelson effect.Download Info
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Paper provided by Faculty of Economics and Business, University of Zagreb in its series EFZG Working Papers Series with number 0607.Length: 37
Date of creation: 13 Sep 2006
Date of revision:
Handle: RePEc:zag:wpaper:0607
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Related research
Keywords: Harrod Balassa Samuelson effect; real exchange rate; purchasing power parity; productivity;Find related papers by JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- 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-2007-01-14 (All new papers)
- NEP-DEV-2007-01-14 (Development)
- NEP-IFN-2007-01-14 (International Finance)
References
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- Bergin, Paul R & Glick, Reuven & Taylor, Alan M, 2004.
"Productivity, Tradability and the Long-Run Price Puzzle,"
CEPR Discussion Papers
4494, C.E.P.R. Discussion Papers.
- Bergin, Paul R. & Glick, Reuven & Taylor, Alan M., 2006. "Productivity, tradability, and the long-run price puzzle," Journal of Monetary Economics, Elsevier, vol. 53(8), pages 2041-2066, November.
- Paul Bergin & Reuven Glick & Alan M. Taylor, 2004. "Productivity, tradability, and the long-run price puzzle," Working Papers in Applied Economic Theory 2004-08, Federal Reserve Bank of San Francisco.
- Alan Taylor & Paul Bergin & Reuven Glick, 2005. "Productivity, Tradability, and the Long-Run Price Puzzle," Working Papers 511, University of California, Davis, Department of Economics.
- Paul Bergin & Reuven Glick & Alan M. Taylor, 2004. "Productivity, Tradability, and the Long-Run Price Puzzle," NBER Working Papers 10569, National Bureau of Economic Research, Inc.
- Bergin, Paul & Taylor, Alan & Glick, Reuven, 2005. "Productivity, Tradability, and the Long-Run Price Puzzle," Working Papers 05-11, University of California at Davis, Department of Economics.
- Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72, pages 584.
- Olga Arratibel & Diego Rodriguez-Palenzuela & Christian Thimann, 2002. "Inflation dynamics and dual inflation in accession countries: a 'New Keynesian' perspective," Working Paper Series 132, European Central Bank.
- Asea, Patrick K & Mendoza, Enrique G, 1994. "The Balassa-Samuelson Model: A General-Equilibrium Appraisal," Review of International Economics, Wiley Blackwell, vol. 2(3), pages 244-67, October.
- Bahmani-Oskooee, Mohsen & Niroomand, Farhang, 1996. "A Reexamination of Balassa's Productivity Bias Hypothesis," Economic Development and Cultural Change, University of Chicago Press, vol. 45(1), pages 195-204, October.
- Balassa, Bela, 1973. "Just How Misleading are Official Exchange Rate Conversions?: Comment," Economic Journal, Royal Economic Society, vol. 83(332), pages 1258-67, December.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Dumitru, Ionut & Jianu, Ionela, 2009. "The Balassa-Samuelson effect in Romania - The role of regulated prices," European Journal of Operational Research, Elsevier, vol. 194(3), pages 873-887, May.
- Rafael Puyana Martínez-Villaba, . "El efecto Balassa-Samuelson en Colombia," Borradores de Economia 630, Banco de la Republica de Colombia.
- Richard Frensch & Achim Schmillen, 2010.
"Can we identify Balassa-Samuelson effects with measures of product variety?,"
Working Papers
288, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
- Frensch, Richard & Schmillen, Achim, 2011. "Can we identify Balassa-Samuelson effects with measures of product variety?," Economic Systems, Elsevier, vol. 35(1), pages 98-108, March.
- Tuomas A. Peltonen & Michael Sager, 2009. "Productivity shocks and real exchange rates - a reappraisal," Working Paper Series 1046, European Central Bank.
- Rafael Puyana, 2010. "El efecto Balassa-Samuelson en Colombia," BORRADORES DE ECONOMIA 007801, BANCO DE LA REPÚBLICA.
- Achim Schmillen, 2011.
"Are Wages Equal Across Sectors of Production? A Panel Data Analysis for Tradable and Non-Tradable Goods,"
Working Papers
102, Bavarian Graduate Program in Economics (BGPE).
- Achim Schmillen, 2010. "Are Wages Equal Across Sectors of Production? A Panel Data Analysis for Tradable and Non-Tradable Goods," Working Papers 285, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
- Josip Funda & Gorana Lukiniæ & Igor Ljubaj, 2007. "Assessment of the Balassa-Samuelson Effect in Croatia," Financial Theory and Practice, Institute of Public Finance, vol. 31(4), pages 321-351.
- Pablo Selaya & Rainer Thiele, 2008. "Aid and Sectoral Labour Productivity," Kiel Working Papers 1468, Kiel Institute for the World Economy.
- Rafael Puyana Martínez-Villalba, 2011. "El efecto Balassa-Samuelson en Colombia," DOCUMENTOS CEDE 007959, UNIVERSIDAD DE LOS ANDES-CEDE.
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This item is featured on the following reading lists or Wikipedia pages:- Balassa–Samuelson effect in Wikipedia (English)
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