TESTING THE PRODUCTIVITY BIAS HYPOTHESIS FOR BRAZIL
Authors : Gulfer VURAL
Pages : 69-72
View : 8 | Download : 4
Publication Date : 2019-12-30
Article Type : Research
Abstract :Purpose- Productivity Bias Hypothesis (Balassa-Samuelson hypothesis) implies that currency appreciates in a relatively more productive country. The focus of this study is to test productivity bias hypothesis for Brazil by employing time series data over the period 1980-2018. Methodology- Time series data is analyzed by Autoregressive Distributed Lag (ARDL) method of cointegration. Findings-Stationarity of the variables are supported by Augmented Dickey Fuller (ADF) and Phillips Perron (PP) tests. F bounds test and error correction model suggest that variables are cointegrated. Conclusion- Empirical analysis does not support the evidence in favor of productivity bias hypothesis for Brazil over the selected period.Keywords : Productivity bias hypothesis, Brazil