Towards a System of Multilateral Unit Labor Cost-Based Competitiveness Indicators for Advanced, Developing, and Transition Countries

November 1, 1997

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Anthony G. Turner, and Stephen S. Golub Towards a System of Multilateral Unit Labor Cost-Based Competitiveness Indicators for Advanced, Developing, and Transition Countries, (USA: International Monetary Fund, 1997) accessed December 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper attempts to extend the range of countries covered by the IMF’s multilateral real exchange rate indexes based on relative unit labor costs (REER-ULCs) in manufacturing. A data set was assembled that permits calculation of REER-ULCs for 23 newly industrialized, developing, and transition countries in addition to the 21 industrial countries covered by the current system. Although the results are mostly quite encouraging, they should be considered preliminary because of uncertainty about the reliability and comparability of the underlying data. Also, unit labor costs are not available on as timely a basis as consumer price indexes (CPIs), especially for nonindustrial countries. Thus, the ULC-based indicators should supplement rather than replace the current CPI-based system.

Subject: Competition, Exchange rates, Financial markets, Foreign exchange, Labor, Labor costs, Real effective exchange rates, Real exchange rates

Keywords: Africa, Coefficient of variation, Competition, Competitiveness indicator, Cost, Effective exchange rates, Exchange rate, Exchange rates, Export price measure, Goods, Goods price, Labor cost, Labor costs, Manufactured goods, Real effective exchange rates, Real exchange rates, Standard deviation, WP

Publication Details

Pages:

46
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1997/151
Stock No:

WPIEA1511997
ISBN:

9781451922882
ISSN:

1018-5941

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