The evidence for a productivity-based explanation for real exchange rate behavior of East Asian currencies is examined …. Using sectoral output and employment data, relative prices and relative productivities are calculated for China, Indonesia … relative productivity ratios, one finds a relationship for Japan, Malaysia, and the Philippines. Only when augmenting the …

dynamic productivity-based models are used to motivate the empirical exercise. The candidate determinants include productivity … sectoral productivity differentials is estimated with greater precision as long as homogeneity of parameters is imposed upon … most empirically successful model of the real exchange rate includes sectoral productivity measures in the long run …