01807cas a2200241 a 4500 AALejournalIMF004269 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451842111 1018-5941 BD-DhAAL BD-DhAAL Golub, Stephen. Comparative Advantage, Exchange Rates, and G-7 Sectoral Trade Balances / Stephen Golub. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (50 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 This paper uses a Ricardian framework to clarify the role of microeconomic and macroeconomic factors governing the time series and cross-section behavior of sectoral trade balances. Unit labor costs and trade balances are calculated for several sectors for the seven major industrial countries. The time series and cross-section variation in sectoral unit labor costs is decomposed into relative productivity, wage differentials, and exchange rate variations. The main findings are that changes over time in sectoral trade balances, especially for the United States and Japan, are quite well explained by the evolution of unit labor cost, suggesting that trade patterns conform to comparative advantage. The cross-section results are, however, less conclusive. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1994/005 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/005/001.1994.issue-005-en.xml IMF e-Library