negotiable

The resulting relative difference in price between tradables and nontradables means two things:

Tradable goods and services--goods and services that can be sold in a location, typically another country, different from where they were produced--are, theoretically, sold at the same price wherever they are sold.

Thus, domestically generated structural inflation manifests itself in the nontradable sector, where it arrives via subsidies from the more productive sector of tradables. Consequently, increases in the prices of nontradables exceed the increases in the prices of tradables (5)--and, by (2f), exceed world price increases.

While favouring the PPP in tradable sector, the ADF and KPSS are indicating the presence of the HBS in Pakistan.

Households receive a random endowment of tradables [y.sup.T.sub.t] and a constant endowment of non-tradables [y.sup.N].

Also in the context of the two-sector framework, an exogenous increase in foreign demand for domestically-produced tradable goods raises the relative price of domestic tradables and expands production of tradables.

Given the prospect of slowing employment growth in nontradables and rising competitive pressure on tradables, major employment problems in the near future are a certainty.

The productivity gains in the formal segments of the tradable and non-tradable sectors have then accrued to profits

The minimum that is required is a two-sector view of the world with both tradable and non-tradable goods.

The analysis in this paper covers the same four variables and additionally includes tradable and non-tradable inflation.

The research also concluded that investments in tradable non-resource manufacturing and commercial services relatively decrease with political instability.