The price of development: The Penn–Balassa–Samuelson effect revisited *

  title={The price of development: The Penn–Balassa–Samuelson effect revisited *},
  author={Fadi Hassan},
  journal={Journal of International Economics},
  • Fadi Hassan
  • Published 1 September 2016
  • Economics
  • Journal of International Economics
A tale worth telling: prices and regional development
This paper explores the overlooked story of prices and regional development. In doing so, we base our analysis on the Balassa-Samuelson effect (Balassa, 1964; Samuelson, 1964), which states that
Understanding International Price and Consumption Disparities
This study proposes a new measure of the tradability of 120+ commodities based on price dispersion. This approach is used to construct price indices of tradables and non-tradables for 150+ countries.
Rebasing 'Maddison' : new income comparisons and the shape of long-run economic development
Economists’ understanding of long-run economic development has greatly improved thanks to the historical statistics compiled by the late Angus Maddison. Yet his method for comparing income levels
The Level Reer Model in the External Balance Assessment (EBA) Methodology
This paper offers an empirical model of the drivers of the level of the Real Effective Exchange Rate (REER) that is now part of the IMF’s methodology for the assessment of external positions,


Real Exchange Rates in Developing Countries: Are Balassa-Samuelson Effects Present?
There is surprisingly little empirical research on whether Balassa-Samuelson effects can explain the long-run behavior of real exchange rates in developing countries. This paper presents new evidence
The Balassa-Samuelson Productivity Bias Hypothesis: Further Evidence Using Panel Data
Using panel data for fifty-nine industrialized and developing countries, this paper examines the Balassa-Samuelson productivity bias hypothesis. A random coefficients model that allows for country-
Facets of Balassa-Samuelson Thirty Years Later
Prior to the important Penn studies of Kravis-Heston-Summers, statisticians relied on exchange-rate conversion estimates that would be correct only if naive Gustav Cassel versions of purchasing-power
Review of International Economics. Real Exchange Rate Trends and Growth: A Model of East Asia.
In contrast to the Balassa-Samuelson hypothesis, many fast-growing Asian countries have experienced little trend real exchange rate appreciation, or even depreciation. Moreover, their long-run real
Cross-country income levels over time: did the developing world suddenly become much richer?
The latest global survey on relative prices and income levels, for the year 2011, showed changes to relative income levels that were larger in lower income countries, thereby narrowing the world
The Real Exchange Rate and Economic Growth
I show that undervaluation of the currency (a high real exchange rate) stimulates economic growth. This is true particularly for developing countries. This finding is robust to using different
Real Exchange Rates and Sectoral Productivity in the Eurozone
We investigate the link between real exchange rates and sectoral TFP for eurozone countries. We show that real exchange rate variation, both cross-country and time-series, closely accords with an
Structural Change in a Multisector Model of Growth
Economic growth takes place at uneven rates across different sectors of the economy. This paper has two objectives related to this fact: (a) to derive the implications of different sectoral total