The Real Exchange Rate and Export Growth : Are Services Different?
This paper considers the determinants of exports of modern services and traditional services. It considers the growth of export volumes as well as export surges, that is, the periods of rapid sustained export growth. It asks whether the determinant...
Main Authors: | , |
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Format: | Policy Research Working Paper |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2014
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2013/09/18325211/real-exchange-rate-export-growth-services-different http://hdl.handle.net/10986/16846 |
Summary: | This paper considers the determinants of
exports of modern services and traditional services. It
considers the growth of export volumes as well as export
surges, that is, the periods of rapid sustained export
growth. It asks whether the determinants of export growth
rates and export surges differ between merchandise,
traditional services, and modern services and whether
developing countries are different. It confirm the
importance of the real exchange rate for export growth. The
paper finds that the effect of the real exchange rate is
even stronger for exports of services than for exports of
goods and that it is especially strong for exports of modern
services. The results suggest that in the course of their
development, as developing countries shift from exporting
commodities and merchandise to exporting traditional and
modern services, appropriate policies toward the real
exchange rate become even more important. |
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