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The Czech Economic Transition: Exploring Options Using a Macrosectoral Model

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  • Frank Barry
  • John Bradley
  • Michal Kejak
  • David Vavra

Abstract

The processes that will drive the next stage of the Czech transition are likely to be similar to those promoting real convergence in the EU cohesion countries. We draw on previous modelling research on the cohesion economies to construct and calibrate a small macrosectoral model of the Czech Republic that serves to highlight key policy issues facing CEE-country decision-makers. Four scenarios are then explored by simulation: the first projects the current pattern of disequilibrium wage setting into the future, while a second looks at the consequences of labour market reform. The other scenarios highlight some of the differences between policy strategies based on indigenous versus FDI-driven export-led growth.

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Bibliographic Info

Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp158.

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Date of creation: Oct 2000
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Handle: RePEc:cer:papers:wp158

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  1. Bradley, John & Herce, Jose-Antonio & Modesto, Leonor, 1995. "Modelling in the EU periphery : The HERMIN project," Economic Modelling, Elsevier, vol. 12(3), pages 219-220, July.
  2. Barry, Frank & Bradley, John, 1997. "FDI and Trade: The Irish Host-Country Experience," Economic Journal, Royal Economic Society, vol. 107(445), pages 1798-1811, November.
  3. Bradley, John & Gerald, John Fitz, 1990. "Production structures in a small open economy with mobile and indigenous investment," European Economic Review, Elsevier, vol. 34(2-3), pages 364-374, May.
  4. Stanley Fischer, 1991. "Growth, Macroeconomics, and Development," NBER Working Papers 3702, National Bureau of Economic Research, Inc.
  5. Fischer, S., 1991. "Growth, Macroeconomics, and Development," Working papers 580, Massachusetts Institute of Technology (MIT), Department of Economics.
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Cited by:
  1. Barry, Frank, 2004. "Export-platform foreign direct investment: the Irish experience," EIB Papers 6/2004, European Investment Bank, Economics Department.
  2. John Bradley & Timo Mitze & Edgar Morgenroth & Gerhard Untiedt, 2005. "An Integrated Micro-Macro (IMM) Approach to the Evaluation of Large-scale Public Investment Programmes: The Case of EU Structural Funds," Papers WP167, Economic and Social Research Institute (ESRI).
  3. DRAGOTÄ‚ Violeta Gianina & BUZILÄ‚ Nicoleta & DOGAN Mihaela Simona, 2013. "Importance of Investments in Romania by European Funds," Anale. Seria Stiinte Economice. Timisoara, Faculty of Economics, Tibiscus University in Timisoara, vol. 0, pages 220-224, May.

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