S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Institute for Economies in Transition, Bank of Finland BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland

No 7/2001:
Interpreting real exchange rate movements in transition countries

Mark De Broeck () and Torsten Slk ()

Abstract: Several transition countries have experienced strong real exchange rate appreciations. This paper tests the hypothesis that these appreciations reflect underlying productivity gains in the tradable sector. Using panel data over the period 199398, the results show clear evidence of productivity-driven exchange rate movements in the central and eastern European and Baltic countries. Transition countries, particularly the EU accession countries that have begun to catch up, can expect to experience further productivity-driven real exchange rate appreciations. Evidence from a large cross-section of non-transition countries indicates that catching up by one percent will be associated with a 0.4 percent real appreciation.

Keywords: real exchange rates; transition; Balassa-Samuelson effects; (follow links to similar papers)

JEL-Codes: F30; G14; G15; P34; (follow links to similar papers)

46 pages, July 26, 2001

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

dp0701.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Pivi Mtt ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:bofitp:2001_007 This page was generated on 2014-12-14 19:21:14