Relationship between Real Effective Exchange Rate and Labor Productivity: Empirical Evidence

Joseph Angelo

doi:10.52812/msbd.18

Authors

Joseph Angelo Nanjing University of Information Science and Technology

DOI:

https://doi.org/10.52812/msbd.18

Keywords:

GDP, labor productivity, economy, High-income & Middle-high-income economy, Real Effective Exchange Rate, Correlation, Regression

Abstract

Labor productivity is one of the indicators that reveal a country’s economic development, human resource quality, availability of infrastructure and technology, among others. Improvement in organizational productivity is also dependent on labor productivity. The current study attempts to study the relationship between labor productivity and the Real Effective Exchange Rate in the selected countries. The sample included Australia, Brazil, Bulgaria, Canada, China, Iceland, Japan, Malaysia, South Africa, and the USA. With the aid of statistical techniques, the study found that productivity and exchange rate are correlated with varying degrees of strength and the nature of the relationship varies from country to country. The study concludes with important directions for future investigations.

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