Real Effective Exchange Rate and Industrial Productivity in Croatia: Wavelet Coherence Analysis

Mile Bošnjak, Kordić Gordana () and Novak Ivan ()
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Kordić Gordana: PhD, Full Professor, Department of Finance, Faculty of Economics and Business Zagreb, University of Zagreb
Novak Ivan: PhD, Assistant Professor, Faculty of Economics and Business, Zagreb University of Zagreb

South East European Journal of Economics and Business, 2021, vol. 16, issue 1, 30-37

Abstract: This paper brings releationship between real effective exchange rate and industry production in Croatia. Research sample consists of monthly data from January 2000 up to June 2019. Following wavelet coherence approach, empirical results reveal the relationship across time and frequency domain. The empirical obtained from wavelet coherence analysis and confirmed with conventional correlation analysis suggested positive relationship between industrial productivity and real effective exchange rate in Croatia, with depreciation as a factor of positive influence on industrial productivity. Research results provided in the paper also contributes to the debate on exchange rate policy in Croatia, extending the discussion on national exchange rate policy implications.

Keywords: real effective exchange rate; industrial productivity; wavelet coherence analysis; Croatia (search for similar items in EconPapers)
JEL-codes: E52 F31 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:vrs:seejeb:v:16:y:2021:i:1:p:30-37:n:10

DOI: 10.2478/jeb-2021-0003

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