Relative Prices and Sectoral Labor Productivity Differentials: A Long-Run Analysis for Greece
Ekonomia, Vol. 4, No. 2, Winter 2000
15 Pages Posted: 14 Dec 2003 Last revised: 22 Feb 2018
Date Written: October 1999
This paper investigates empirically the long-run linkages between sectoral relative prices and labor productivities implied by the Balassa (1964) and Samuelson (1964) framework. The role of wage non-homogeneity across sectors is explored by incorporating sectoral wages into the analysis. The results of the cointegration methodology fail to establish the existence of a stable long-run relationship.
Keywords: Balassa-Samuelson model, Cointegration
JEL Classification: F41, C32
Suggested Citation: Suggested Citation