Purchasing Power Parity and New Trade Theory

Purchasing Power Parity and New Trade Theory
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 of tradables and on the importance of competitiveness, for which we construct an original proxy. Using a panel dynamic OLS... READ MORE...

Publication date: February 2002
ISBN 9781451845129
$15.00

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