Productivity-Real Exchange Rate Nexus: Revisiting the Balassa-Samuelson Hypothesis for Emerging Asia

This data set comprises of real exchange rate and productivity differential of ten emerging Asian countries against U.S. The real exchange rate series is constructed by using CPI, GDP deflator and GDP defaltor (for non-tradable sectors only). The productivity series (average productivity of labor) are generated using sectoral value added. The two type of series are constructed after a very careful transformation of United Nations and ILO data sets of sectoral value added and sectoral employment to make it exactly comparable under ISIC Revision-3. The two series are constructed under broad sectoral division of subject economies (4 sector classification) as well for finer sectoral breakup (7 sector classification). Also, the Stata and EVIews program codes for data transformation and econometric estimation of productivity-real exchange rate linkage is supplied.