The relative price of nontraded goods and sectoral total factor productivity: An empirical investigation

• 成果类型: Article
• 署名作者: Kakkar, V
• 署名单位: City University of Hong Kong
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/003465303765299927
• 发表日期: 2003-05
• 页码: 444-452
• 关键词: real exchange-rate; residual-based tests; long-run; international evidence; error-correction; time-series; unit-root; cointegration; POWER; panel

摘要

This paper examines the relationship between the relative price of nontraded goods and sectoral total factor productivities (TFPs) in the context of the Balassa-Samuelson model. With perfect capital mobility internationally and perfect factor mobility domestically, the relative price of nontraded goods is predicted to be independent of preferences over traded and nontraded goods, and completely determined by TFPs in the traded- and nontraded-goods sectors. Panel cointegration and unit root tests, applied to a panel of fourteen OECD economies, indicate that the relative price of nontraded goods and the labor-share-adjusted TFP differential are cointegrated with the unit cointegration vector.