positive price-income association is attributable, at least partly, to the Balassa-Samuelson productivity differential effect …

across countries and sectors. On the other hand, opening to trade boosts individual firms’ productivity growth, via a number … of channels, and also enhances allocative efficiency across firms, in turn increasing aggregate productivity growth. One …

Historical data for over hundred years and 14 countries is used to estimate the long-run effect of productivity on the … real exchange rate. We find large variations in the productivity effect across four distinct monetary regimes in the sample … argue that changes in trade costs over time may affect the impact of productivity on the real exchange rate over time. We …