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Productividad y Tipo de Cambio Real en Chile

Author

Listed:
  • Rodrigo Valdés
  • Valentín Délano

Abstract

This paper studies the relation between productivity gains and the RER in Chile using three complementary methodologies. First, we calibrate a simple RER with Balassa-Samuelson effect with Chilean data. Second, we estimate cointegration vectors for the relation between RER with fundamentals (including productivity differentials). Third, we look at the international evidence on the relation between productivity and the RER using a panel of 92 countries with data from 1960 to 1990. The three methods yield surprisingly similar results. Explicitly considering the way the RER is constructed in Chile, our estimation indicates that the annual appreciation due to productivity differentials for the 1990-1997 period is in the range 0.7% to 0.9%.

Suggested Citation

  • Rodrigo Valdés & Valentín Délano, 1998. "Productividad y Tipo de Cambio Real en Chile," Working Papers Central Bank of Chile 38, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:38
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_38.pdf
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    References listed on IDEAS

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    6. Sebastián Edwards, 1982. "Diferenciales de Progreso Tecnológico y Diferenciales de Inflación: Un Comentario," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 19(56), pages 87-92.
    7. Hamid Faruqee, 1995. "Long-Run Determinants of the Real Exchange Rate: A Stock-Flow Perspective," IMF Staff Papers, Palgrave Macmillan, vol. 42(1), pages 80-107, March.
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