Tintin, Cem - In: International Journal of Sustainable Economy 6 (2014) 1, pp. 1-18
This study tests the Balassa-Samuelson (BS) hypothesis, which explains the real exchange rate with relative productivity differences, for ten OECD countries between 1975 and 2007 by using the Johansen cointegration approach. The study further tests the effect of the terms of trade variable by...