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Structural real exchange rate and unemployment interdependencies in Argentina
journal contribution
posted on 2016-06-10, 08:45 authored by Eric PentecostEric Pentecost, Fernando Zarzosa ValdiviaBased on a three-sector, micro-founded model of a small open economy, this paper investigates the interdependences between the structural real exchange rate (defined as the relative prices tradable to non-tradable goods prices) and the unemployment rate with an application to Argentina. The empirical results suggest a significant, negative relationship between the structural real exchange rate and the rate of unemployment, suggesting that an appreciating real exchange rate may lead to Dutch disease effects – which effectively contract the size of the manufacturing sector – and damage long-term growth and employment opportunities.
History
School
- Business and Economics
Department
- Economics
Published in
Revista de Economia y EstadisticaCitation
PENTECOST, E.J. and ZARZOSA VALDIVIA, F., 2016. Structural real exchange rate and unemployment interdependencies in Argentina. Revista de Economia y Estadistica, 52 (1), pp. 57-86.Publisher
© Institute of Economics and Finance at the Faculty of Economics, National University of CordobaVersion
- VoR (Version of Record)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Acceptance date
2016-03-01Publication date
2016Notes
This is an open access paper published in the journal Revista de Economia y Estadistica and distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 InternationalISSN
0034-8066Publisher version
Language
- en