International trade and factor productivity as determinants of the real effective exchange rate

Using large panel data 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 and...

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Autores principales: Gantman, Ernesto R., Dabós, Marcelo
Formato: Working Paper
Lenguaje:Inglés
Publicado: Universidad de Belgrano - Centro de Estudios en Negocios, Finanzas, Economía y Marketing (CENFEM) 2016
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Acceso en línea:http://repositorio.ub.edu.ar/handle/123456789/8246
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Sumario:Using large panel data 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 and total factor productivity leads to its appreciation.