 INFLATION CONVERGENCE IN CENTRAL AND EASTERN EUROPEAN ECONOMIESAlina M. Spiru
Romanian Economic Business Review, 2008, vol. 3, issue 4, 14-34 Abstract: In this study, the degree of convergence of inflation rates of Central and East European economies to a variety of measures of European norm inflation is assessed using a range of econometric techniques. These include unit root testing based upon time series and panels of data and – an innovation to the pertinent literature – tests of nonlinear convergence. The results suggest that while convergence can be revealed in a number of cases, there is some sensitivity associated with the testing framework, in particular whether time series or panel methods are used. Furthermore, the inflation convergence performance of the Central and Eastern European countries is conditional on the chosen inflation benchmark, the composition of the panel and the correlations among members. Moreover, by conducting a battery of linearity tests, it is found that nonlinear inflation convergence is virtually ubiquitous for the period that includes the accession of the Central and Eastern European former transition economies into the EU. Keywords: inflation convergence; panel data; linearity tests (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:rau:journl:v:3:y:2008:i:4:p:14-34 Access Statistics for this article More articles in Romanian Economic Business Review from Romanian-American University Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.