Investigating the Balassa-Samuelson hypothesis in transition : Do we understand what we see?

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dc.contributor Bank of Finland Égert, Balázs 2014-09-22T08:00:11Z 2014-09-22T08:00:11Z 2002
dc.identifier.isbn 951-686-828-2
dc.identifier.issn 1456-4564
dc.description Ilmestynyt myös: Economics of Transition 10 ; 2 (2002).
dc.description.abstract This paper studies the Balassa-Samuelson effect in the Czech Republic, Hungary, Poland, Slovakia and Slovenia.Time series and panel co-integration techniques are used to show that the BS effect works reasonably well in these transition economies during the period 1991:Ql to 2001:Q2.However, productivity growth does not fully translate into price increases due to the structure of CPI indexes.We thus argue that productivity growth will not hinder the ability of the five EU accession candidates to meet the Maastricht criterion on inflation in the medium term.Moreover, the observed appreciation of the CPI-deflated real exchange rate is found to be systematically higher compared to the real appreciation justified by the Balassa-Samuelson effect, particularly in the cases of the Czech Republic and Slovakia.This may be partly explained by the trend appreciation of the tradable-goodsprice-based real exchange rate, increases in non-tradable sector prices due to price liberalisation and demand-side pressures, and the evolution of the nominal exchange rate due to the exchange rate regime and magnitude of capital inflows.
dc.format.extent 38 s.
dc.language.iso eng
dc.subject Tsekki
dc.subject Unkari
dc.subject Puola
dc.subject Slovakia
dc.subject valuuttakurssit
dc.subject tuottavuus
dc.subject siirtymätaloudet
dc.subject SP
dc.subject Bofit-kokoelma
dc.subject Balassa-Samuelson effect
dc.title Investigating the Balassa-Samuelson hypothesis in transition : Do we understand what we see?
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-201408072090 BOFIT Discussion Papers
dc.series.year 2002
dc.series.number 6/2002
dc.series.sortingnumber 6 1.6.2002
dc.contributor.orgunit Institute for Economies in Transition (BOFIT)
dc.description.publication Published in Economics of Transition vol 10, no 2 (2002), pp. 273-309

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