ترجمه مقاله نقش ضروری ارتباطات 6G با چشم انداز صنعت 4.0
- مبلغ: ۸۶,۰۰۰ تومان
ترجمه مقاله پایداری توسعه شهری، تعدیل ساختار صنعتی و کارایی کاربری زمین
- مبلغ: ۹۱,۰۰۰ تومان
The real exchange rate, one of the most important relative prices, has caused many debates in the world. To our knowledge, the current understandings of the determinant of the real exchange rate are far from complete. None of the papers in the literature have considered the role of labor market conditions. In this paper, we aim at filling this void and analyzing how labor market flexibilities can affect the real exchange rate. We first build a theoretical model to analyze the relationship between labor market flexibility and the real exchange rate. In presence of the firm-level shocks, a country with a flexible labor market can reallocate labor across firms more easily than a country with a rigid labor market. This implies that more productive firms can take larger market shares. As a result, the country with a flexible labor market is associated with a higher average productivity, which in turn leads to a lower final good price and hence, a lower real exchange rate. Using two measures for the labor market flexibilities (one from Global Competitiveness Report and the other from Doing Business Report (see Tables 1 and 2)), we provide cross-country empirical support to our theory. How important is the effect of labor market flexibility on the real exchange rate? As an application from our regression results, we consider one experiment: if a country with a rigid labor market such as Portugal improves its labor market flexibility to the level of Hong Kong (an economy with a flexible labor market), while keeping everything else constant, its real exchange rate will decline by around 15%–20%.