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Purchasing Power Parity and New Trade Theory

Purchasing Power Parity and New Trade Theory »

Volume/Issue: 2002/32

Series: IMF Working Papers

Author(s): Luca Ricci , and Ronald MacDonald

Publisher: INTERNATIONAL MONETARY FUND

Publication Date: 01 February 2002

DOI: http://dx.doi.org/10.5089/9781451845129.001

ISBN: 9781451845129

Keywords: New trade theory, productivity differentials, competitiveness, exchange rate, real exchange rate, exchange rates

This paper theoretically derives and empirically tests the implications of a new trade theory framework for the systematic movements in the real exchange rate. It focuses on the effect of imperfect substitutability...

Purchasing Power Parity and New Trade Theory

Purchasing Power Parity and New Trade Theory »

Source: Purchasing Power Parity and New Trade Theory

Volume/Issue: 2002/32

Series: IMF Working Papers

Author(s): Luca Ricci , and Ronald MacDonald

Publisher: INTERNATIONAL MONETARY FUND

Publication Date: 01 February 2002

ISBN: 9781451845129

Keywords: New trade theory, productivity differentials, competitiveness, exchange rate, real exchange rate, exchange rates

This paper theoretically derives and empirically tests the implications of a new trade theory framework for the systematic movements in the real exchange rate. It focuses on the effect of imperfect substitutability...