The baumol-balassa-samuelson effect over one century in six eu countries and the united states

• RAZGALLAH, B. ^[1]
  1. [1] Panthéon-Assas University

     Panthéon-Assas University

     París, Francia

     
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 8, Nº. 1, 2008, págs. 41-52
• Idioma: inglés
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• Resumen

  • The aim of this paper is to test the Baumol-Balassa-Samuelson effect in seven countries over one century. The test accounts for an endogenous structural break in data and shows that the relative price of non-tradable goods shares a common stochastic trend withdifferences in productivity growth between the tradable and non-tradable sectors in six countries. The estimates of this paper suggest that differences in productivity growthbetween countries are an important determinant of the behaviour of real exchange rates.