The Baltic states and Europe: common factors of economic activity
AbstractParticipation in the European Economic Area (EEA) and the intention to join the monetary union increased the motivation of the new Member States to achieve a high level synchronisation of economic activity with the euro area. This paper aims to characterise fluctuations of economic activity that are common for the Baltic States, Central and Eastern European (CEE) countries, euro area countries, and Russia. For analysis of real standardised GDP growth, the dynamic factor model is employed. The results of the study show that the Baltic economies are similar in economic development and share a common factor. After 2000, GDP growth between the Baltic States and the main euro area countries indicates growing synchronisation of economic development between these country groups.
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Bibliographic InfoArticle provided by Baltic International Centre for Economic Policy Studies in its journal Baltic Journal of Economics.
Volume (Year): 8 (2008)
Issue (Month): 1 (October)
business cycle synchronisation; dynamic factor model; dynamic correlation;
Other versions of this item:
- Ludmila Fadejeva & Aleksejs Melihovs, 2008. "The Baltic States and Europe: Common Factors of Economic Activity," Working Papers 2008/03, Latvijas Banka.
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- F20 - International Economics - - International Factor Movements and International Business - - - General
- C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
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