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• W2103003204 abstract "We examine the evolution of non-tradable and tradable prices in the Indian economy over 1980-2002 and find widening differentials: the real exchange rate has been appreciating. This might seem unsurprising, since India's rapid per capita income growth suggests Balassa-Samuelson factors at play. However, after 1990, the tradable-non-tradable labor productivity gap, the driver of real appreciation according to Balassa-Samuelson, virtually disappeared. So what explains the real appreciation? Assessing the role of both demand and supply factors, we find that demand pressures arising from higher income growth accounted for much of the relative price increase during the post-reform period. Falling import prices also contributed significantly, along with an increase in government spending." @default.
• W2103003204 created "2016-06-24" @default.
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• W2103003204 date "2007-11-01" @default.
• W2103003204 modified "2023-09-24" @default.
• W2103003204 title "What Explains India's Real Appreciation?" @default.
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