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The Harrod-Balassa-Samuelson Effect: A Survey of Empirical Evidence

Josip Tica orcid.org/0000-0001-7937-1573 ; Faculty of Economics and Business, University of Zagreb
Ivo Družić ; Faculty of Economics and Business, University of Zagreb

Abstract

The paper surveys empirical evidence on the Harrod-Balassa-Samuelson effect. The survey encompasses the published empirical work on the phenomenon since its (re)discovery in 1964. In total, 58 empirical papers are examined within a specialized analytical framework. The body of empirical evidence is synthesized through four major elements. The analysis starts with the ongoing controversy related to the name of the theory. This is followed by a presentation of the evolution of the theoretical and econometric model. It ends with an analysis of the results of the surveyed empirical studies. Results of the survey indicate that growing body of evidence definitely points towards professional rethinking about the significance of the Harrod-Balassa-Samuelson effect.

Keywords

Harrod-Balassa-Samuelson effect; real exchange rate; purchasing power parity; productivity

Hrčak ID:

137213

URI

https://hrcak.srce.hr/137213

Publication date:

13.9.2006.

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