¡@¡@Taiwan lacks of natural resources and highly industrialized at the same time. International trade activities are the most crucial way to obtain raw materials for production and channels to sell Taiwan¡¦s output to the rest of the world. Therefore, the fluctuation of real exchange rate influences exports and imports just as double blades sword, and subtly causes welfare issue. In this paper, we combine traditional productivity argument proposed by Balassa-Samuelson and recent literatures focusing on sticky price both to cause real exchange rate in the long-run using Taiwan as a case. Using structural VAR model to decompose unobservable shocks, change in productivity between domestic economy and the trading blocs is still the most influencing factor to explain the fluctuation of real exchange rate of Taiwan.
Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0719105-123516 |
Date | 19 July 2005 |
Creators | Chang, Ching-Ju |
Contributors | Ming-Jang Weng, Yung-Hsiang Ying, Jia-Hei Weng |
Publisher | NSYSU |
Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
Language | English |
Detected Language | English |
Type | text |
Format | application/pdf |
Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0719105-123516 |
Rights | withheld, Copyright information available at source archive |
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