paper examines the internal transmission mechanisms of population age structure
and urbanization to real exchange rate based on G20’s panel data over 1993-2016
periods. “Balassa-Samuelson effect” and “Factor endowment effect” are main
channels that population age structure affect U.S dollar real exchange rate,
and “demand structure effect” is not significant. The improvement of
urbanization rate has significant positive effect on U.S dollar real exchange
rate through “Balassa-Samuelson effect” and “Factor endowment effect” has
significant negative effect on U.S dollar real exchange rate through “demand
structure effect”. On the basis of theoretical and empirical analysis, we put
forward suggestions to suppress the negative effects of aging on productivity.
Cite this paper
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