The contribution of sectoral productivity differentials to inflation in Greece

Gibson, H. and Malley, J. (2008) The contribution of sectoral productivity differentials to inflation in Greece. Open Economies Review, 19(5), pp. 629-650. (doi: 10.1007/s11079-007-9071-3)

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This paper estimates the magnitude of the Balassa-Samuelson effect for Greece. We calculate the effect directly, using sectoral national accounts data, which permits estimation of total factor productivity (TFP) growth in the tradeables and nontradeables sectors. Our results suggest that it is difficult to produce one estimate of the BS effect. Any particular estimate is contingent on the definition of the tradeables sector and the assumptions made about labour shares. Moreover, there is also evidence that the effect has been declining through time as Greek standards of living have caught up on those in the rest of the world and as the non-tradeables sector within Greece catches up with the tradeables.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Malley, Professor Jim
Authors: Gibson, H., and Malley, J.
Subjects:H Social Sciences > HB Economic Theory
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Open Economies Review
ISSN (Online):1573-708X

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