Exploring the Correlation between Real Exchange Rate Misalignment and Economic Growth in the CEE Countries

Ildiko Magyari
Additional contact information
Ildiko Magyari: Faculty of Finance and Banking, Bucharest University of Economics

No 16, Advances in Economic and Financial Research - DOFIN Working Paper Series from Bucharest University of Economics, Center for Advanced Research in Finance and Banking - CARFIB

Abstract: The main goal of this paper is to investigate the existence of any kind of relationship between real exchange rate misalignment and economic growth in four Central and Eastern European countries (CEEC): the Czech Republic, Hungary, Poland and Romania. Taking as a basic idea the classical textbook relation between exchange rate movements and economic growth, respectively the fact that exchange rate undervaluation could stimulate growth, the paper presents a series of results using time series and panel analysis. The findings in the case of the country-by-country analysis are conflicting with those of the panel data analysis. In both case, the estimation results emphasize those suggested by the literature, respectively an increase in the real exchange rate misalignment can easily slow economic growth.

Keywords: Real Exchange Rate Misalignment; Economic Growth (search for similar items in EconPapers)
Date: 2008-09
View list of references

Downloads: (external link)
http://www.dofin.ase.ro/Working%20papers/Magyari%2 ... ari.dissertation.pdf First version, 2008 (application/pdf)

Related works:
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: http://EconPapers.repec.org/RePEc:cab:wpaefr:16

Access Statistics for this paper

More papers in Advances in Economic and Financial Research - DOFIN Working Paper Series from Bucharest University of Economics, Center for Advanced Research in Finance and Banking - CARFIB
Contact information at EDIRC.
Series data maintained by Ciprian Necula ().