Table 1.

Variables identification

Variables	Definition and construction	Source
Exchange rate measures
Nominal exchange rate	Bilateral nominal rate with the $US (average period normal)	WDI (2011)
Real exchange rate (RER)	Bilateral exchange rate against US$ (end period normal)	Author’s calculation
Productivity measures
Real GDP per capita (PROD)	Productivity differential relative to main trading partner	WDI (2011)
Terms of trade measure
Terms of trade (TOT)	Ratio of export price to import price	WDI (2011)
Trade openness measure
Trade openness (TO)	Exp + IMP/GDP	WDI (2011)
Fiscal measure
Government expenditures (GE)	Government expenditures (as % of GDP)	WDI (2011)