University of Tabriz Applied Theories of Economics 2423-6586 5 1 2018 05 22 The Effect of Productivity on Real Exchange Rate with ‎the Emphasis the Abundance of Skilled and Unskilled ‎Labor The Effect of Productivity on Real Exchange Rate with ‎the Emphasis the Abundance of Skilled and Unskilled ‎Labor 85 112 7261 FA Seyed Bagher Fazayel Ardakani Ph.D. Candidate in Economics, Shahid Bahonar University of Kerman Hossein Akbari Fard Assistant Professor of Economics, Shahid Bahonar University of Kerman Sayyed Abdolmajid Jalaee Professor of Economics, Shahid Bahonar University of Kerman Journal Article 2018 01 02 This article develops the traditional two-part model in which uses labor and capital. That is, in this model, for production are used capital, skilled labor and unskilled labor. It is assumed; tradable sector for production use capital and skilled labor and non-tradable sector use capital and unskilled labor. The main objective of this article is investigation the effects of productivity on the real exchange rate index according to the abundance of skilled and unskilled labor. For this purpose, This article are used pooled data including Iran and trade partners of Iran in the period 2000-2015 using Fixed Effects (FE), Dynamic Ordinary Least Square (DOLS), Fully Modified Ordinary Least Square (FMOLS) and Pooled Mean Group (PMG) methods. The Estimated results show that the increase in productivity will lead to higher (lower) real exchange rate appreciation in countries that have the high abundance of (unskilled) skilled labor.<br /><br /> This article develops the traditional two-part model in which uses labor and capital. That is, in this model, for production are used capital, skilled labor and unskilled labor. It is assumed; tradable sector for production use capital and skilled labor and non-tradable sector use capital and unskilled labor. The main objective of this article is investigation the effects of productivity on the real exchange rate index according to the abundance of skilled and unskilled labor. For this purpose, This article are used pooled data including Iran and trade partners of Iran in the period 2000-2015 using Fixed Effects (FE), Dynamic Ordinary Least Square (DOLS), Fully Modified Ordinary Least Square (FMOLS) and Pooled Mean Group (PMG) methods. The Estimated results show that the increase in productivity will lead to higher (lower) real exchange rate appreciation in countries that have the high abundance of (unskilled) skilled labor.<br /><br /> https://ecoj.tabrizu.ac.ir/article_7261_55ffc944f35aa0e74b153d4cf0d5190f.pdf