The effect of Balassa-Samuelson in South-East Asia
High growth in the South-East Asian countries for the past three decades should imply high increases in productivity to reveal the Balassa-Samuelson (BS) effect of high growth accompanied by real exchange rate (RER) appreciation. This paper examines the effects of productivity increases by developin...
| Main Authors: | , , , |
|---|---|
| Formato: | Artigo |
| Idioma: | English |
| Publicado em: |
Canadian Center of Science and Education
2008
|
| Acesso em linha: | http://psasir.upm.edu.my/id/eprint/7611/1/7611.pdf |
| _version_ | 1825944240595664896 |
|---|---|
| author | Mohamad, Saadiah Jusoff, Kamaruzaman Nair, Mahendhiran Zaghlol, Azlul Khalilah |
| author_facet | Mohamad, Saadiah Jusoff, Kamaruzaman Nair, Mahendhiran Zaghlol, Azlul Khalilah |
| author_sort | Mohamad, Saadiah |
| collection | UPM |
| description | High growth in the South-East Asian countries for the past three decades should imply high increases in productivity to reveal the Balassa-Samuelson (BS) effect of high growth accompanied by real exchange rate (RER) appreciation. This paper examines the effects of productivity increases by developing a robust unrestricted error correction model (UECM) of RER based on a class of theories of time-varying equilibrium exchange rates as opposed to the conventional PPP-based theory. An empirical study was carried out on four selected Southeast Asian countries: Indonesia, Malaysia, Singapore, and Thailand. This work suggests that the effects of productivity increases may be more complicated than what the theory suggests and points to the possibility that the Balassa-Samuelson is affected by the stage of economic development rather than mere productivity increases. |
| first_indexed | 2024-03-06T07:12:45Z |
| format | Article |
| id | upm.eprints-7611 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T07:12:45Z |
| publishDate | 2008 |
| publisher | Canadian Center of Science and Education |
| record_format | dspace |
| spelling | upm.eprints-76112017-10-23T05:07:57Z http://psasir.upm.edu.my/id/eprint/7611/ The effect of Balassa-Samuelson in South-East Asia Mohamad, Saadiah Jusoff, Kamaruzaman Nair, Mahendhiran Zaghlol, Azlul Khalilah High growth in the South-East Asian countries for the past three decades should imply high increases in productivity to reveal the Balassa-Samuelson (BS) effect of high growth accompanied by real exchange rate (RER) appreciation. This paper examines the effects of productivity increases by developing a robust unrestricted error correction model (UECM) of RER based on a class of theories of time-varying equilibrium exchange rates as opposed to the conventional PPP-based theory. An empirical study was carried out on four selected Southeast Asian countries: Indonesia, Malaysia, Singapore, and Thailand. This work suggests that the effects of productivity increases may be more complicated than what the theory suggests and points to the possibility that the Balassa-Samuelson is affected by the stage of economic development rather than mere productivity increases. Canadian Center of Science and Education 2008 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/7611/1/7611.pdf Mohamad, Saadiah and Jusoff, Kamaruzaman and Nair, Mahendhiran and Zaghlol, Azlul Khalilah (2008) The effect of Balassa-Samuelson in South-East Asia. Asian Social Science, 4 (8). pp. 112-116. ISSN 1911-2017; ESSN: 1911-2025 http://www.ccsenet.org/journal/index.php/ass/article/view/1204 10.5539/ass.v4n8p112 |
| spellingShingle | Mohamad, Saadiah Jusoff, Kamaruzaman Nair, Mahendhiran Zaghlol, Azlul Khalilah The effect of Balassa-Samuelson in South-East Asia |
| title | The effect of Balassa-Samuelson in South-East Asia |
| title_full | The effect of Balassa-Samuelson in South-East Asia |
| title_fullStr | The effect of Balassa-Samuelson in South-East Asia |
| title_full_unstemmed | The effect of Balassa-Samuelson in South-East Asia |
| title_short | The effect of Balassa-Samuelson in South-East Asia |
| title_sort | effect of balassa samuelson in south east asia |
| url | http://psasir.upm.edu.my/id/eprint/7611/1/7611.pdf |
| work_keys_str_mv | AT mohamadsaadiah theeffectofbalassasamuelsoninsoutheastasia AT jusoffkamaruzaman theeffectofbalassasamuelsoninsoutheastasia AT nairmahendhiran theeffectofbalassasamuelsoninsoutheastasia AT zaghlolazlulkhalilah theeffectofbalassasamuelsoninsoutheastasia AT mohamadsaadiah effectofbalassasamuelsoninsoutheastasia AT jusoffkamaruzaman effectofbalassasamuelsoninsoutheastasia AT nairmahendhiran effectofbalassasamuelsoninsoutheastasia AT zaghlolazlulkhalilah effectofbalassasamuelsoninsoutheastasia |