Abstract This paper develops a two-sector model of an open economy, and utilizes the ISIC 2 digit sectoral data from the Asian Economies which have high growth rates, compares the effects of the movements of the wage rate, the nominal effective exchange rate, and the real effective exchange rate on structural change. By using the GMM estimation of the dynamic panel data model, we find that the change in nominal effective exchange rate has no significant effect on both inter-sectoral and intra-sectoral relative output, but decrease in real effective exchange rate can promote the optimization of inter-sectoral structure and the increase of nominal wage rate can promote the optimization of intra-sectoral structure.
DING Yi-Bing,FU Ying-Cha,LIU Lu. Effective Exchange Rate, Wage Rate, and Structural Change ——The Theory and Empirical Analysis from East Asia High-growth Economies. Economic Survey, 2014, 31(5): 0121.
2014, Vol. 31 
