01745cas a2200253 a 4500 AALejournalIMF003234 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859591 1018-5941 BD-DhAAL BD-DhAAL Khan, Mohsin. Real Exchange Rates In Developing Countries : Are Balassa-Samuelson Effects Present? / Mohsin Khan, Ehsan Choudhri. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students There is 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 on this issue based on a panel data sample of 16 developing countries. The paper finds that the traded-nontraded productivity differential is a significant determinant of the relative price of nontraded goods, and the relative price in turn exerts a significant effect on the real exchange rate. The terms of trade also influence the real exchange rate. These results provide strong verification of Balassa-Samuelson effects for developing countries. Mode of access: Internet Choudhri, Ehsan. IMF Working Papers; Working Paper ; No. 2004/188 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/188/001.2004.issue-188-en.xml IMF e-Library