Balassa-Samuelson Effect in Won/Dollar and Won/Yen Exchange Rates

Balassa-Samuelson Effect in Won/Dollar and Won/Yen Exchange Rates

This paper examines, using various models including a non-linear one, that the Balassa-Samuelson (BS) effect can account for the persistence of deviations from PPP in the long-run movements of won/dollar and won/yen real exchange rates. In test for PPP hypothesis that incorporates the BS effect, usi...

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Bibliographic Details
Main Authors: Donghwan Oh, Kyttack Hong
Format: Article
Language:English
Published: Korea Institute for International Economic Policy 2010-06-01
Series:East Asian Economic Review
Subjects:
Purchasing Power Parity
Johansen's Cointegration Method
Balassa-Samuelson Effect
Behavioral Equilibrium Exchange Rate
Non-linear Adjustment Process
Online Access:http://dx.doi.org/10.11644/KIEP.JEAI.2010.14.1.215

Internet

http://dx.doi.org/10.11644/KIEP.JEAI.2010.14.1.215

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