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Government expenditure, real exchange rate and the ‘decline’ of the manufacturing sector: Some empirical evidence

✍ Scribed by Alessandro Penati


Book ID
116100084
Publisher
Elsevier Science
Year
1986
Tongue
English
Weight
473 KB
Volume
21
Category
Article
ISSN
0165-1765

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This paper studies the relationship between the real exchange rate and manufacturing pro®ts using Marston's model of pricing-to-market. Looking at US data, we ®nd that a sustained real depreciation of the dollar has a signi®cant and substantial in¯uence on manufacturing pro®ts. During the early 1980