Series: IMF Working Papers
Author(s): Luca Ricci , and Ronald MacDonald
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 February 2002
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...