An Alternative Theory of Real Exchange Rate Determination: Theory and Empirical Evidene for the Mexican Economy, 1970-2011

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Autor principal: Francisco Antonio Martínez Hernández
Formato: Artículo científico
Lenguaje:en
Publicado: Universidad Autónoma Metropolitana 2015
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author Francisco Antonio Martínez Hernández
author_facet Francisco Antonio Martínez Hernández
contents An Alternative Theory of Real Exchange Rate Determination: Theory and Empirical Evidene for the Mexican Economy, 1970-2011 Francisco Antonio Martínez Hernández Economía y Finanzas Non ARDL ECM models real exchange rate relative real unit labor costs This paper presents an alternative theory with regard to the Mexico-US real exchange rate. Our ap-proach takes a long term perspective and employs a classical political economy framework developed by Anwar Shaikh. Unlike mainstream theories which focus on relative consumer or producer prices, we argue that relative unit labor costs of the Mexican and US manufacturing sectors is a good indica-tor of the real exchange rate. Moreover, we explore the role of government expenditures and the net capital flows to Mexico in the determination of the real exchange rate. The empirical methods used in this paper include unit root tests and three ARDL-ECM models. 2015 artículo científico 0185-3937 https://www.redalyc.org/articulo.oa?id=41343701002 en http://www.redalyc.org/revista.oa?id=413 Análisis Económico application/pdf Universidad Autónoma Metropolitana Análisis Económico (México) Num.74 Vol.XXX
format Artículo científico
id redalyc_41343701002
institution Redalyc
language en
publishDate 2015
publisher Universidad Autónoma Metropolitana
spellingShingle An Alternative Theory of Real Exchange Rate Determination: Theory and Empirical Evidene for the Mexican Economy, 1970-2011
Francisco Antonio Martínez Hernández
Economía y Finanzas
Non
ARDL
ECM models
real exchange rate
relative real unit labor costs
An Alternative Theory of Real Exchange Rate Determination: Theory and Empirical Evidene for the Mexican Economy, 1970-2011 Francisco Antonio Martínez Hernández Economía y Finanzas Non ARDL ECM models real exchange rate relative real unit labor costs This paper presents an alternative theory with regard to the Mexico-US real exchange rate. Our ap-proach takes a long term perspective and employs a classical political economy framework developed by Anwar Shaikh. Unlike mainstream theories which focus on relative consumer or producer prices, we argue that relative unit labor costs of the Mexican and US manufacturing sectors is a good indica-tor of the real exchange rate. Moreover, we explore the role of government expenditures and the net capital flows to Mexico in the determination of the real exchange rate. The empirical methods used in this paper include unit root tests and three ARDL-ECM models. 2015 artículo científico 0185-3937 https://www.redalyc.org/articulo.oa?id=41343701002 en http://www.redalyc.org/revista.oa?id=413 Análisis Económico application/pdf Universidad Autónoma Metropolitana Análisis Económico (México) Num.74 Vol.XXX
title An Alternative Theory of Real Exchange Rate Determination: Theory and Empirical Evidene for the Mexican Economy, 1970-2011
topic Economía y Finanzas
Non
ARDL
ECM models
real exchange rate
relative real unit labor costs
url https://www.redalyc.org/articulo.oa?id=41343701002