Real exchange rate, innovation and economic growth: a comparative analysis for Latin America and Asia

The aim of this paper is to analyze the role of the real exchange rate, compared to non-price competitiveness, on the dynamics of the product. We study, through a fixed effects panel model, the impact of the real exchange rate, productivity, trade and Foreign Direct Investment on Gross Domestic Prod...

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Detalles Bibliográficos
Autores: Landa Díaz, Heri Oscar, Cerezo García, Verónica
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2024
País:México
Institución:UNIVERSIDAD NACIONAL AUTÓNOMA DE MÉXICO
Repositorio:Investigación Económica
Idioma:español
OAI Identifier:oai:ojs.pkp.sfu.ca:article/87179
Acceso en línea:https://www.revistas.unam.mx/index.php/rie/article/view/87179
Access Level:acceso abierto
Palabra clave:Real exchange rate
innovation
economic growth
panel model
tipo de cambio real
innovación
crecimiento económico
modelo panel
Descripción
Sumario:The aim of this paper is to analyze the role of the real exchange rate, compared to non-price competitiveness, on the dynamics of the product. We study, through a fixed effects panel model, the impact of the real exchange rate, productivity, trade and Foreign Direct Investment on Gross Domestic Product (GDP) in 12 Latin American countries and 10 Asian countries during the period 1990-2021. Specifically, we test whether a competitive exchange rate (undervalued) generates positive effects on the economic growth rate. The main results suggest that: 1) variations in the real exchange rate generate limited and inconclusive effects on GDP; 2) an improvement in productivity and competitiveness generates an expansion of economic dynamics; 3) economic openness has a positive impact, particularly among Asian countries, on economic performance.