 The Balassa-Samuelson Effect in RomaniaVasile Dedu () and Bogdan Dumitrescu Journal for Economic Forecasting, 2010, issue 4, 44-53 Abstract: This paper aims to provide estimates of the the Balassa-Samuelson effect in Romania – the extent to which differences in productivity growth between tradables and nontradables industries explain the observed differences in inflation between Romania and the euro area. The Balassa-Samuelson effect has major implications for interpretation of the inflation and the exchange rate criteria for European Monetary Union membership. The conclusion is that the Balassa-Samuelson effect explains only marginally the observed inflation differential. Unlike previous studies which estimated higher values for this effect, this paper considers the productivity differential of each sector and the weight of the tradables sector in Romania in relation to the Euro Area. The results show that there is very unlikely that the productivity differential endangers the nominal convergence criterions. Keywords: Balassa-Samuelson effect; productivity differential; inflation differential; nominal convergence (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:rjr:romjef:v::y:2010:i:4:p:44-53 Access Statistics for this article Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman More articles in Journal for Economic Forecasting from Institute for Economic Forecasting 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.