Structural Real Exchange Rate and Unemployment Interdependencies in Argentina
Based on a three-sector micro-founded model of a small open economy, this paper investigates the interdependences between the structural real exchange rate (defined as the relative prices tradable to non-tradable goods prices) and the unemployment rate with an application to Argentina. The empirical...
Guardado en:
| Autores principales: | , |
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| Formato: | Artículo revista |
| Lenguaje: | Inglés |
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Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba.
2014
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| Acceso en línea: | https://revistas.unc.edu.ar/index.php/REyE/article/view/14936 |
| Aporte de: |
| Sumario: | Based on a three-sector micro-founded model of a small open economy, this paper investigates the interdependences between the structural real exchange rate (defined as the relative prices tradable to non-tradable goods prices) and the unemployment rate with an application to Argentina. The empirical results suggest a significant, negative relationship between the structural real exchange rate and the rate of unemployment, suggesting that an appreciating real exchange rate may lead to Dutch disease effects – which effectively contract the size of the manufacturing sector – and damage long-term growth and employment opportunities. |
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