TESTING THE PRODUCTIVITY BIAS HYPOTHESIS FOR BRAZIL

Authors : Gulfer VURAL

Pages : 69-72

View : 13 | Download : 7

Publication Date : 2019-12-30

Article Type : Research Paper

Abstract :Purpose- Productivity Bias Hypothesis insert ignore into journalissuearticles values(Balassa-Samuelson hypothesis); implies that currency appreciates in a relatively more productive country. The focus of this study is to test productivity bias hypothesis for Brazil by employing time series data over the period 1980-2018. Methodology- Time series data is analyzed by Autoregressive Distributed Lag insert ignore into journalissuearticles values(ARDL); method of cointegration. Findings-Stationarity of the variables are supported by Augmented Dickey Fuller insert ignore into journalissuearticles values(ADF); and Phillips Perron insert ignore into journalissuearticles values(PP); tests. F bounds test and error correction model suggest that variables are cointegrated. Conclusion- Empirical analysis does not support the evidence in favor of productivity bias hypothesis for Brazil over the selected period.
Keywords : Productivity bias hypothesis, Brazil