The Real Exchange Rate and Economic Growth

# The Real Exchange Rate and Economic Growth > OpenAlex Metadata Hub · https://openalex.org/W2155346737 ## Bibliographic - **DOI:** 10.1353/eca.0.0020 - **Year:** 2008 - **Citations:** 1726 - **Open Access:** Yes (bronze) - **License:** — - **Source:** https://muse.jhu.edu/article/261232/pdf ## Authors - Dani Rodrik ## Abstract I show that undervaluation of the currency (a high real exchange rate) stimulates economic growth. This is true particularly for developing countries. This finding is robust to using different measures of the real exchange rate and different estimation techniques. I also provide some evidence that the operative channel is the size of the tradable sector (especially industry). These results suggest that tradables suffer disproportionately from the government or market failures that keep poor countries from converging toward countries with higher incomes. I present two categories of explanations for why this may be so, the first focusing on institutional weaknesses, and the second on product-market failures. A formal model elucidates the linkages between the real exchange rate and the rate of economic growth. ## Keywords Exchange rate, Economics, Currency, Government (linguistics), Monetary economics, Estimation, Developing country, International economics, Macroeconomics, Economic growth ## Concepts - Exchange rate - Economics - Currency - Government (linguistics) - Monetary economics - Estimation - Developing country - International economics - Macroeconomics - Economic growth - Philosophy - Management - Linguistics --- *Metadata only — full text not imported unless Open Access license permits.*

Bài “The Real Exchange Rate and Economic Growth” được TradingBase chuyển thành Knowledge Product cho trader — không phải trang đọc abstract OpenAlex. Tóm lược học thuật (đã diễn giải): I show that undervaluation of the currency (a high real exchange rate) stimulates economic growth. This is true particularly for developing countries. This finding is robust to using different measures of the real exchange rate and different estimation techniques. I also provide some evidence that the operative channel is the size of the tradable sector (especially industry). These results suggest that tradables suffer disproportionately from the government or market failures that keep poor countries from converging toward countries with higher incomes. I present two categories of explanations for why this may be so, the first focusing on institutional weaknesses, and the second on product-market failures. A formal model elucidates the linkages between the real exchange rate and the rate of economic growth. Phần Trading Insights bên dưới nối nghiên cứu với Forex, vàng, USD, lãi suất và risk regime — để bạn đưa vào journal và playbook. Metadata DOI/OA chỉ là rail tham chiếu; nội dung chính là summary, takeaways và ứng dụng thị trường do Content Factory sinh.