exchange rate (REER), on the one hand, and trade openness, trade balance, the terms of trade, factor productivity, and exchange … depreciation of the REER. The other variables considered in the analysis-factor productivity, trade balance, terms of trade, and …

Productivity differentials among countries are said to be one of the major sources that contribute to the deviation of … the Purchasing Power Parity-based exchange rate from the equilibrium rate, hence the productivity bias hypothesis. Prior … to last review article on the productivity bias hypothesis in 1976, almost all studies relied upon cross …

The productivity bias hypothesis states that a relatively more productive country should experience a real appreciation …