Productivity Bias Hypothesis and The Purchasing Power Parity: a review article

Mohsen Bahmani‐Oskooee and Nasir Abm
Authors registered in the RePEc Author Service: Mohsen Bahmani-Oskooee

Journal of Economic Surveys, 2005, vol. 19, issue 4, 671-696

Abstract: Abstract. Productivity differentials among countries are said to be one of the major sources that contribute to the deviation of the Purchasing Power Parity‐based exchange rate from the equilibrium rate, hence the productivity bias hypothesis. Prior to last review article on the productivity bias hypothesis in 1976, almost all studies relied upon cross‐sectional regression analysis. Since then, two groups of empirical studies have emerged. While one group has employed time‐series data, the other one has used panel data. These two later groups have provided more support to the hypothesis than the earlier cross‐sectional studies. This paper reviews and criticizes each group separately and provides tables that summarize main features of each study.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46)

Downloads: (external link)
https://doi.org/10.1111/j.0950-0804.2005.00261.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jecsur:v:19:y:2005:i:4:p:671-696

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0950-0804

Access Statistics for this article

More articles in Journal of Economic Surveys from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().