The Balassa-Samuelson effect states that productivity differences between the production of tradable goods in different countries 1) explain large observed differences in wages and in the price of ...

Drawing a scatter diagram between differences in service prices and productivity among Japanese regions reveals a positive correlation. Additionally, all students of international economics know of ...

We incorporate different sectoral job separation rates into a two-sector small open economy model to investigate the Balassa-Samuelson (B-S) effect. While labour is mobile, unemployment occurs due to ...

Abstract: There is surprisingly little empirical research on whether Balassa-Samuelson effects can explain the long-run behavior of real exchange rates in developing countries. This paper presents new ...

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those ...

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Nearly half a century has passed since academics Bela Balassa and Paul Samuelson discovered, in effect, why ...