CEPII, Recherche et Expertise sur l'economie mondiale
Measuring the Balassa-Samuelson Effect: A guidance Note on the RPROD Database

Cécile Couharde
Anne-Laure Delatte
Carl Grekou
Valérie Mignon
Florian Morvillier

 Highlights :
  • RPROD is a global database that complements EQCHANGE, by providing additional measures of the Balassa-Samuelson effect.
  • RPROD includes five measures of this effect based on: the relative GDP per capita, the relative labor productivity, the relative consumer-price-to-producer-price ratio, and two relative sectoral value-added deflators.
  • These measures are provided for a wide range of countries (up to 182 economies, depending on the considered indicator), spanning from 1973 to 2018 and using several weighting schemes associated with each country's main trading partners.

 Abstract :
This guidance note outlines the construction and contents of RPROD. This new database developed by CEPII complements the EQCHANGE database, by providing additional measures of the Balassa-Samuelson effect. RPROD delivers the following indicators computed for each country included in the database, and relative to its main trading partners: (i) GDP per capita, (ii) labor productivity, (iii) consumer-price-to-producer-price ratio, (iv) three-sectors' value-added deflator, and (v) six-sectors' value-added deflator. These different measures are publicly available (http://www.cepii.fr/CEPII/fr/bdd_modele/presentation.asp?id=34), with the aim to contribute to the investigation of the Balassa-Samuelson hypothesis, and to the comparison of estimated equilibrium real exchange rates and currency misalignments across alternative proxies of this effect.

 Keywords : Balassa-Samuelson | Relative Productivity | Tradables | Non-tradables

 JEL : F31, F41

Related articles and documents :

  • "Measuring the Balassa-Samuelson effect: A guidance note on the RPROD database", International Economics

  • CEPII Working Paper
    N°2019-11, October 2019

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     Fields of expertise

    Money & Finance