생산성과 생산요소비용에 의한 환율결정구조에 관한 연구

A Study on Determination Structure of the Foreign Exchange Rate Influenced by Productivity and Production Factor Costs

The research paper is basically designed to investigate determination structure of the foreign exchange rate based on productivity and production factor costs which represent a real sector of the national economy. Empirical evidence revealed that market exchange rates are strongly influenced by a factor from production side such as productivity and production factor costs in comparison with relative prices(purchasing power). Labor cost is a dominated component among the factors in the production side, and the productivity has relatively less effects on exchange rates. As far as capital cost concerns, it also bas to be mentioned that a long run interest rate is more influential to the determination of exchange rates than a short run interest rate. Moreover, it is essentially recognized that the production factor costs should be more highly positioned rather than the productivity in managing foreign exchange market.