An empirical estimation of Balassa – Samuelson Effect in case of Eastern European Countries
AbstractIntegration into the European Monetary Union (EMU) and adoption of Euro became a specific objective for Eastern European Countries after their accession into the European Union. This objective implies specific nominal and real economic convergence for these countries within a given period of time (Copenhagen criteria). Nominal convergence measurement is based on well-defined system of economic indicators (Maastricht and Amsterdam criteria). Real convergence refers to real economic performance of a country and it is commonly associated with GDP growth rate and productivity level. From a broader perspective, real and nominal convergence could be seen as complementary. Tensions between real and nominal convergence are tested through Balassa – Samuelson Effect. In this paper it is analyzed the evolution of nominal and real convergence based on a proposed set of indicators and it is estimated Balassa-Samuelson Effect on non-Euro countries.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 31407.
Date of creation: 15 Mar 2010
Date of revision:
EMU; Euro; Optimal Currency Area; Balassa Samuelson Effect;
Other versions of this item:
- Păun Cristian, 2009. "An empirical estimation of Balassa-Samuelson Effect in case of Eastern European Countries," Revista OEconomica, Romanian Society for Economic Science, Revista OEconomica, issue 01, March.
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-18 (All new papers)
- NEP-FDG-2011-06-18 (Financial Development & Growth)
- NEP-MAC-2011-06-18 (Macroeconomics)
- NEP-OPM-2011-06-18 (Open Economy Macroeconomic)
- NEP-TRA-2011-06-18 (Transition Economics)
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