Does the Balassa-Samuelson Theory Explain the Link Between Relative Population Growth and Purchasing Power Parity?
Relative population growth affects relative prices through the so-called Balassa–Samuelson (BS) mechanism and that in turn impacts PPP. This paper empirically investigates the relationship between the PPP exchange rate and relative population growth in a panel of 80 selected countries. Following the...
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| Format: | Journal Article |
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Economic Society of Singapore
2013
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| Online Access: | http://hdl.handle.net/20.500.11937/7495 |