EconPapers    
Economics at your fingertips  
 

The impact of market regulations on intra-European real exchange rates

Agnès Benassy-Quere and Dramane Coulibaly

Review of World Economics (Weltwirtschaftliches Archiv), 2014, vol. 150, issue 3, 529-556

Abstract: We study the contribution of market regulations to the dynamics of the real exchange rate within the European Union. Based on a model proposed by De Gregorio et al. (Rev Int Econ 2(3):284–305, 1994a ), we show that both product market regulations in nontradable sectors and employment protection tend to raise the real exchange rate. We then carry out an econometric estimation for European countries for 1985–2006 to quantify the contributions of the pure Balassa–Samuelson effect and those of market regulations on real exchange-rate variations. Based on this evidence and on a counter-factual experiment, we conclude that the relative evolutions of product market regulations and employment protection across countries play a very significant role for real exchange-rate variations within the European Union and especially within the euro area, through their impacts on the relative price of nontradable goods. Copyright Kiel Institute 2014

Keywords: Real exchange rate; Balassa–Samuelson effect; Product market regulations; Employment protection; F41; J50; L40 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10290-014-0185-6 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The Impact of Market Regulations on Intra-European Real Exchange Rates (2014) Downloads
Working Paper: The Impact of Market Regulations on Intra-European Real Exchange Rates (2014) Downloads
Working Paper: The Impact of Market Regulations on Intra-European Real Exchange Rates (2014) Downloads
Working Paper: The Impact of Market Regulations on Intra-European Real Exchange Rates (2014) Downloads
Working Paper: The Impact of Market Regulations on Intra-European Real Exchange Rates (2013) Downloads
Working Paper: The Impact of Market Regulations on Intra-European Real Exchange Rates (2013) Downloads
Working Paper: The Impact of Market Regulations on Intra-European Real Exchange Rates (2013) Downloads
Working Paper: The Impact of Market Regulations on Intra-European Real Exchange Rates (2013) Downloads
Working Paper: The Impact of Market Regulations on Intra-European Real Exchange Rates (2013) Downloads
Working Paper: The Impact of Market Regulations on Intra-European Real Exchange Rates (2013) Downloads
Working Paper: The Impact of Market Regulations on Intra European Real Exchange Rates (2012) Downloads
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:spr:weltar:v:150:y:2014:i:3:p:529-556

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10290/PS2

DOI: 10.1007/s10290-014-0185-6

Access Statistics for this article

Review of World Economics (Weltwirtschaftliches Archiv) is currently edited by Paul Bergin, Holger Görg, Cédric Tille and Gerald Willmann

More articles in Review of World Economics (Weltwirtschaftliches Archiv) from Springer, Institut für Weltwirtschaft (Kiel Institute for the World Economy) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-22
Handle: RePEc:spr:weltar:v:150:y:2014:i:3:p:529-556