IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/26012.html

Balassa–Samuelson in the Long Run: Qualitative Success, Quantitative Limits

Author

Listed:
  • Shinnosuke KIKUCHI

Abstract

I qualitatively and quantitatively revisit the Balassa–Samuelson (BS) mechanism in the long run. Traditional panel regression specifications without time fixed effects are fragile, but adding time fixed effects yields a stable, positive BS elasticity across samples and frequencies—evidence that the data support BS qualitatively on average across countries. Quantitatively, however, a standard multi-country trade model fed only by observed sectoral productivity cannot match country paths and delivers too small magnitudes. These failures persist with costly trade, multi-country, multi-sector settings, input–output linkages, and time-varying trade costs.

Suggested Citation

  • Shinnosuke KIKUCHI, 2026. "Balassa–Samuelson in the Long Run: Qualitative Success, Quantitative Limits," Discussion papers 26012, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:26012
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/26e012.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:26012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.