Labour as leverage for the exchange rate - Does labour intensity magnify the effect that exchange rates have on output?
This thesis examines if the amount of labour intensity within a sector changes the effect that the real effective exchange rate have on output. Fixed panel data regressions for Sweden, Norway and Denmark lend support to the hypothesis that labour intensive sectors’ output react more to changes in the real exchange rate than its less labour intensive counterparts. The regressions show that the labo
