The Real Exchange Rate and Export Growth: Are Services Different?

38 Pages Posted: 20 Apr 2016

See all articles by Barry Eichengreen

Barry Eichengreen

University of California, Berkeley; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Poonam Gupta

World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2013

Abstract

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.

Keywords: Macroeconomic Management, Economic Theory & Research, Economic Stabilization, Emerging Markets, Achieving Shared Growth

Suggested Citation

Eichengreen, Barry and Gupta, Poonam, The Real Exchange Rate and Export Growth: Are Services Different? (September 1, 2013). World Bank Policy Research Working Paper No. 6629, Available at SSRN: https://ssrn.com/abstract=2333945

Barry Eichengreen (Contact Author)

University of California, Berkeley ( email )

310 Barrows Hall
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Poonam Gupta

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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