Lessons from the czech and slovak economies split
The less developed Slovak economy was converging quickly to the Czech economic level after the World War II, thanks to the massive reallocation of resources. The inflow amounted to 11% of the Slovak GDP, the outflow from the Czech Lands represented 4% of their GDP. The Slovak GDP per capita reached around three quarters of the Czech one in 1992. After the split of Czechoslovakia, the economic policy adjusted to the changed conditions by sinking real wages and depreciation of Slovak koruna, so that the Slovak ULC are the lowest among the Central European countries now. The cost competitiveness, accompanied by an abundant inflow of FDI and economic reforms after the EU accession helped to speed the real convergence. As a result, the Slovak GDP per capita reached 84% of the Czech one in 2007. The balance of costs and benefits of the euro adoption varies due to different conditions in the succession states and to a certain extent justifies the more rapid advancement to the single currency in Slovakia. The common challenge for both economies is to overcome the one-sided orientation on cost/price competitiveness based on low wages.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 2009 (2009)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: nam. W. Churchilla 4, 130 67 Praha 3|
Phone: (02) 24 09 51 11
Fax: (02) 24 22 06 57
Web page: http://www.vse.cz/
More information through EDIRC
|Order Information:|| Postal: Editorial office Prague Economic Papers, University of Economics, nám. W. Churchilla 4, 130 67 Praha 3, Czech Republic|
Web: http://www.vse.cz/pep/ Email:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Vasily Astrov & Vladimir Gligorov & Peter Havlik & Mario Holzner & Gabor Hunya & Sebastian Leitner & Zdenek Lukas & Anton Mihailov & Olga Pindyuk & Leon Podkaminer & Josef Pöschl & Waltraut Urban & He, 2008. "The Big Boom Is Over, but Growth Remains Strong and Inflation Calms Down," wiiw Forecast Reports 2, The Vienna Institute for International Economic Studies, wiiw.
When requesting a correction, please mention this item's handle: RePEc:prg:jnlpep:v:2009:y:2009:i:1:id:338:p:3-25. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frantisek Sokolovsky)
If references are entirely missing, you can add them using this form.