The Value of the "Southern" Dollar

Don Clark, W. Charles Sawyer and Richard L. Sprinkle
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Richard L. Sprinkle: University of Texas-El Paso

The Review of Regional Studies, 1997, vol. 27, issue 2, 185-193

Abstract: This paper constructs a trade-weighted regional exchange rate index for the Southern states and compares it to a similar index comprising the rest of the United States. Results indicate there are nontrivial differences between them. The two indexes are not cointegrated, and the index comprising the rest of the United States does not appear to be causing movements in the Southern dollar. In an international trade sense, the South is still distinctive. Researchers investigating how exchange rate changes affect regional exports and economic growth should be cautious in making inferences based upon a national exchange rate index.

Date: 1997
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