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Balassa-Samuelson Effect |
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Balassa-Samuelson EffectThe hypothesis that an increase in the productivity of tradables relative to nontradables, if larger than in other countries, will cause an appreciation of the real exchange rate. Due to Balassa (1964) and Samuelson (1964).Similar MatchesStolper-Samuelson TheoremStolper-Samuelson Theorem1. The proposition of the Heckscher-Ohlin Model that a rise in the relative price of a good raises the real wage of the factor used intensively in that industry and lowers the real wage of the other factor. 2. The further proposition (requiring addition assumptions) that protection lowers the real wage of a country's scarce factor and raises the real wage of its abundant factor. Due to Stolper and Samuelson (1941). Heckscher-Ohlin-Samuelson ModelHeckscher-Ohlin-Samuelson ModelUsually synonymous with the Heckscher-Ohlin Model, although sometimes the term is used to distinguish the more formalized, mathematical version that Samuelson used from the more general but less well-defined conceptual treatment of Heckscher and Ohlin. |
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