Beyond the Balassa-Samuelson effect in some new member states of the European Union

José García-Solanes (), F. Israel Sancho-Portero and Fernando Torrejón-Flores

Economic Systems, 2008, vol. 32, issue 1, 17-32

Abstract: This paper analyses the Balassa and Samuelson hypothesis in two groups of countries: six new member states (NMSs) of the EU and six old member states (OMSs) not affected by the transition problems. We find that in the NMS group, the model may be successfully enlarged with variables that account for both quality improvements in the tradable sector and increases in the demand for domestic tradable goods. In the OMS panel, the model fails because national markets of tradable goods remain segmented, probably due to political interests, imperfect competition and transportation costs.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0939-3625(07)00076-3
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Beyond the Salassa-Samuelson Effect in some New Member States of the European Union (2007)
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:eee:ecosys:v:32:y:2008:i:1:p:17-32

Access Statistics for this article

Economic Systems is currently edited by R. Frensch

More articles in Economic Systems from Elsevier Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Liu ().