International trade and factor productivity as determinants of the real effective exchange rate |
| |
| Authors: | Ernesto R Gantman Marcelo P Dabós |
| |
| Institution: | 1. Facultad de Cs. Económicas, Universidad de Buenos Aires, Buenos Aires, Argentina;2. Escuela de Negocios, Universidad de Belgrano, Buenos Aires, Argentina;3. CENTRUM Católica Graduate Business School, PUCP, Lima, Perú |
| |
| Abstract: | Using panel time-series models that deal with the problems of potential endogeneity and cross-sectional dependence, while also allowing for cross-country heterogeneity in the parameters of interest, we demonstrate that trade openness produces a depreciation of the real effective exchange rate. |
| |
| Keywords: | Real effective exchange rate trade openness terms of trade total factor productivity |
|
|
