Interpreting real exchange rate movements in transition countries
Mark De Broeck and
No 7/2001, BOFIT Discussion Papers from Bank of Finland, Institute for Economies in Transition
Several transition countries have experienced strong real exchange rate appreciations.This paper tests the hypothesis that these appreciations reflect underlying productivity gains in the tradable sector.Using panel data over the period 1993 98, the results show clear evidence of productivity-driven exchange rate movements in the central and eastern European and Baltic countries.Transition countries, particularly the EU accession countries that have begun to catch up, can expect to experience further productivity-driven real exchange rate appreciations.Evidence from a large cross-section of non-transition countries indicates that catching up by one percent will be associated with a 0.4 percent real appreciation
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (104) Track citations by RSS feed
Published in Published in Journal of International Economics vol. 68, no. 2 (2006), pp. 368-383
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bof:bofitp:2001_007
Access Statistics for this paper
More papers in BOFIT Discussion Papers from Bank of Finland, Institute for Economies in Transition Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland. Contact information at EDIRC.
Bibliographic data for series maintained by Minna Nyman ().