Exchange rates, productivity, poverty and inequality

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2 Citations (Scopus)

Abstract

This article analyses differences in the wealth of nations by comparing PPP-based cross-country incomes from the Penn World Table with those derived from prevailing exchange rates. Using the Balassa (1964)-Samuelson (1964) productivity-bias framework, we introduce the 'international poverty line' and illustrate the implications for cross-country income inequality. We demonstrate that our results are not inconsistent with the previous literature when appropriately interpreted.
Original languageEnglish
Pages (from-to)471 - 476
JournalApplied Economics
Volume39
Issue number4
DOIs
Publication statusPublished - 2007

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