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Relative Prices and Sectoral Labor Productivity Differentials:A long-run Analysis for Greece

Zacharias Bragoudakis () and Demetrios Moschos

Ekonomia, 2000, vol. 4, issue 2, 142-155

Abstract: This paper investigates empirically the long-run linkages between sectoral relative prices and labor productivities implied by the Balassa (1964) ans Samuelson (1964) framework. The role of wage non-homogeneity across sectors is explored by incorporating sectoral wages into the analysis.The results of the cointegration methodology fail to establish the existence of a stable long-run relationship.

Date: 2000
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Handle: RePEc:ekn:ekonom:v:4:y:2000:i:2:p:142-155