Economics at your fingertips  

Global Value Chains and Effective Exchange Rates at the Country‐Sector Level

Nikhil Patel, Zhi Wang () and Shang‐jin Wei

Journal of Money, Credit and Banking, 2019, vol. 51, issue S1, 7-42

Abstract: The real effective exchange rate (REER) is one of the most cited statistics in open‐economy macroeconomics. We show that the models used to compute these numbers are not rich enough to allow for the rising importance of global value chains. Moreover, because different sectors within a country participate in international production sharing at different stages, sector‐level variations are also important for determining competitiveness. Incorporating these features, we develop a framework to compute REER at both the sector and country level and apply it on intercountry input‐output tables to study the properties of the new measures.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)

Related works:
Working Paper: Global value chains and effective exchange rates at the country-sector level (2017) Downloads
Working Paper: Global Value Chains and Effective Exchange Rates at the Country-Sector Level (2014) 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:

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2021-04-12
Handle: RePEc:wly:jmoncb:v:51:y:2019:i:s1:p:7-42