Manufactoring, economic growth, and real exchange rate: Empirical evidence in panel data and input-output multipliers

Luciano Gabriel, Luiz Carlos De Santana Ribeiro (), Frederico Jayme Jr and José Luís Oreiro
Additional contact information
Luiz Carlos De Santana Ribeiro: Universidade Federal de Sergipe and National Council for Scientific and Technological Development (CNPq)

PSL Quarterly Review, 2020, vol. 73, issue 292, 51-75

Abstract: This paper investigates the effects of manufacturing and of the real exchange rate (RER) on real per capita income growth. We use dynamic panel models and the calculation of output and employment multipliers for a diversified sample of countries from 1990 to 2011. Three important results can be highlighted. First, we provide new evidence that manufacturing is the most important tradable sector for achieving greater real per capita income growth for developing countries. Second, the greater a country's gap in relation to the technological frontier, the greater the positive effect of an undervalued RER on the real per capita incomegrowth rate. Finally, the manufacturing industry's output multipliers and employment multipliers in the developing countries are higher than those in in developed ones, in all years analyzed.

Keywords: Manufacturing; real exchange rate; economic growth; input-output multipliers (search for similar items in EconPapers)
JEL-codes: F43 L16 R15 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/15478/pdf (application/pdf)

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:psl:pslqrr:2020:13

Ordering information: This journal article can be ordered from
http://www.pslquarterlyreview.info

Access Statistics for this article

PSL Quarterly Review is currently edited by Alessandro Roncaglia and Carlo D'Ippoliti

More articles in PSL Quarterly Review from Economia civile
Bibliographic data for series maintained by Carlo D'Ippoliti ().