A first approach to the impact of the real exchange rate on industrial sectors in Colombia

Sierra, Lya Paola
Manrique L., Karina

2014-12

LC/G.2629-P
7

Descargar documento

Much has been said about possible symptoms of Dutch disease in Colombia in the wake of a marked upsurge in commodity prices and the significant real appreciation of the national currency. This paper examines whether the real effective exchange rate had an impact on industry during the period 2000-2010. Specifically, it evaluates the effect of the appreciation of the real exchange rate on the value added of 63 industrial sectors in Colombia using the Arellano and Bond (1991) generalized method of moments (gmm) estimator. Overall, our results confirm a negative relationship between real exchange rate appreciation and industry. The analysis showed that real exchange rate appreciation had a significant impact on the value added of 21 sectors: a negative effect for 18 sectors and a positive effect for 3 sectors.

INESTABILIDAD MONETARIA; INDUSTRIA; DESARROLLO INDUSTRIAL; COMPETITIVIDAD; MODELOS ECONOMETRICOS; FINANCIAL RESOURCES; ECONOMIC CONDITIONS; MONETARY SYSTEMS; STATISTICAL DATA; ECONOMETRIC MODELS; COMPETITIVENESS; INDUSTRIAL DEVELOPMENT; INDUSTRY; CURRENCY INSTABILITY; RECURSOS FINANCIEROS; SISTEMAS MONETARIOS; CONDICIONES ECONOMICAS; DATOS ESTADISTICOS;