An empirical estimation of Balassa – Samuelson Effect in case of Eastern European Countries

Cristian Paun

MPRA Paper from University Library of Munich, Germany

Abstract: Integration into the European Monetary Union (EMU) and adoption of Euro became a specific objective for Eastern European Countries after their accession into the European Union. This objective implies specific nominal and real economic convergence for these countries within a given period of time (Copenhagen criteria). Nominal convergence measurement is based on well-defined system of economic indicators (Maastricht and Amsterdam criteria). Real convergence refers to real economic performance of a country and it is commonly associated with GDP growth rate and productivity level. From a broader perspective, real and nominal convergence could be seen as complementary. Tensions between real and nominal convergence are tested through Balassa – Samuelson Effect. In this paper it is analyzed the evolution of nominal and real convergence based on a proposed set of indicators and it is estimated Balassa-Samuelson Effect on non-Euro countries.

Keywords: EMU; Euro; Optimal Currency Area; Balassa Samuelson Effect (search for similar items in EconPapers)
JEL-codes: E42 F33 F41 (search for similar items in EconPapers)
Date: 2010-03-15
New Economics Papers: this item is included in nep-fdg, nep-mac, nep-opm and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/31407/1/MPRA_paper_31407.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/40153/1/MPRA_paper_40153.pdf revised version (application/pdf)

Related works:
Journal Article: An empirical estimation of Balassa-Samuelson Effect in case of Eastern European Countries (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:31407

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().