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Productivity Differentials and The Real Exchange Rate: Empirical Evidence From India

Author

Listed:
  • Purna Chandra Parida

    (Institute for social and Economic Change)

  • B Kamaiah
  • Maathai K Mathiyazhagan

Abstract

This paper examines the long-run relationship between the real exchange rate and productivity differentials on traded and non-traded goods in India and Japan by using the data relating to the period from 1974 to 1998. The study uses the co-integration technique and finds that there is an evidence for the Balassa-Samuelson hypothesis, which stipulates that productivity differences in the traded and non-traded goods have a stable long-run equilibrium relationship with real exchange rate.

Suggested Citation

  • Purna Chandra Parida & B Kamaiah & Maathai K Mathiyazhagan, 2001. "Productivity Differentials and The Real Exchange Rate: Empirical Evidence From India," Working Papers 99, Institute for Social and Economic Change, Bangalore.
  • Handle: RePEc:sch:wpaper:99
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    References listed on IDEAS

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    4. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
    5. Carol Ann Rogers & Kenneth A. Swinnerton, 1999. "The Economics of Child Labor: Comment," American Economic Review, American Economic Association, vol. 89(5), pages 1382-1385, December.
    6. Luis Felipe López Calva, 2002. "A social stigma model of child labor," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 17(2), pages 193-217.
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