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We incorporate different sectoral job separation rates into a two-sector small open economy model to investigate the Balassa-Samuelson (B-S) effect. While labour is mobile, unemployment occurs due to ...

Drawing a scatter diagram between differences in service prices and productivity among Japanese regions reveals a positive correlation. Additionally, all students of international economics know of ...

Abstract: There is surprisingly little empirical research on whether Balassa-Samuelson effects can explain the long-run behavior of real exchange rates in developing countries. This paper presents new ...