Lopcu, Kenan; Burgac, Almila; Dulger, Fikret - In: Anadolu University Journal of Social Sciences 12 (2012) 4, pp. 1-22
The Balassa-Samuelson (B-S) hypothesis relies on the productivity differential between tradable and non-tradable sectors to explain deviations in purchasing power parity. According to the B-S hypothesis, because productivity growth in tradable sectors is higher than in non-tradable sectors, real...