Table 1 Variables identification
Variables | Definition and construction | Source |
|---|---|---|
Exchange rate measures | ||
Nominal exchange rate | Bilateral nominal rate with the $US (average period normal) | WDI (2011) |
Real exchange rate (RER) | Bilateral exchange rate against US$ (end period normal) | Author’s calculation |
Productivity measures | ||
Real GDP per capita (PROD) | Productivity differential relative to main trading partner | WDI (2011) |
Terms of trade measure | ||
Terms of trade (TOT) | Ratio of export price to import price | WDI (2011) |
Trade openness measure | ||
Trade openness (TO) | Exp + IMP/GDP | WDI (2011) |
Fiscal measure | ||
Government expenditures (GE) | Government expenditures (as % of GDP) | WDI (2011) |