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ABSTRACT This research aims to test the nexus between real effective exchange rates and absolute cost advantage for the North American Free Trade Agreement (NAFTA) between 1995 and 2014. By… Click to show full abstract
ABSTRACT This research aims to test the nexus between real effective exchange rates and absolute cost advantage for the North American Free Trade Agreement (NAFTA) between 1995 and 2014. By using the dynamic panel generalized method of moments (GMM), the findings show that the manufacturing sectors’ competitiveness is positively associated with the decrease in unit production costs and negatively related to the increase in the intrasectoral profitability gap.
Keywords:
effective exchange;
cost advantage;
absolute cost;
dynamic panel;
real effective
Journal Title: Applied Economics Letters
Year Published: 2020
Link to full text (if available)
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Journal Title: Applied Economics Letters
Year Published: 2020
Link to full text (if available)
Share on Social Media: Sign Up to like & get
recommendations!