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Title: Structural real exchange rate and unemployment interdependencies in Argentina
Authors: Pentecost, Eric J.
Zarzosa Valdivia, Fernando
Keywords: Structural real exchange rate
Unemployment rate
Factor productivity
Capital endowments
Terms of trade
Issue Date: 2016
Publisher: © Institute of Economics and Finance at the Faculty of Economics, National University of Cordoba
Citation: 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.
Abstract: Based 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.
Description: 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 International
Version: Published
URI: https://dspace.lboro.ac.uk/2134/21573
Publisher Link: https://revistas.unc.edu.ar/index.php/REyE/article/view/14936
ISSN: 0034-8066
Appears in Collections:Published Articles (Economics)

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