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Does Industrial Employment React to Movements in the Real Exchange Rate? An Empirical Analysis for Colombia, 2000-2010

Jose Pelaez () and Lya Sierra ()

Latin American Journal of Economics-formerly Cuadernos de Economía, 2016, vol. 53, issue 1, 39-60

Abstract: To determine the effect of the real exchange rate on Colombia’s industrial employment and 59 industrial sectors for the period 2000-2010, we used the generalized method of moments of Arellano and Bond (1991) and data from the Annual Manufacturing Survey of the National Administrative Department of Statistics (DANE). Our findings reveal that a real appreciation of the Colombian peso decreases the country’s manufacturing employment, and disaggregation by industrial sector shows that a real appreciation of the Colombian peso had a negative impact on manufacturing employment in 18 industrial sectors and a positive impact in seven.

Keywords: real exchange rate; industrial employment; Colombia (search for similar items in EconPapers)
JEL-codes: F31 F41 J23 (search for similar items in EconPapers)
Date: 2016
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Latin American Journal of Economics-formerly Cuadernos de Economía is currently edited by Raimundo Soto

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