IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/33995.html
   My bibliography  Save this paper

The economic and monetary union vs. shifts in competitiveness of member states

Author

Listed:
  • Kowalski, Tadeusz
  • Pietrzykowski, Maciej

Abstract

The paper deals with changes in the competitiveness of 12 countries forming the euro area in 1999-2000. These changes are analyzed using various macroeconomic indicators (real exchange rate, trade ratios, labor market and economic output performance). Due to the different levels of development of the countries forming the zone, changes in competitiveness do not extend uniformly. The paper ends with conclusions. The aim of this paper is to assess changes in the relative competitiveness of 12 countries forming the Economic and Monetary Union (EMU) between 1999-2009. Greece was the only EU country which had not yet been accepted in the Union in 1999 and later joined the Eurozone in 2001. Despite the time difference, it was assumed that by including this economy in the analyzed EMU 12 group it would allow for better comprehension of the influence of monetary solutions and general economic policy within this integration grouping on the relative competitiveness of its particular members. Section 1 is devoted to a brief presentation of assumptions and expectations regarding the EMU. Section 2 examines real effective exchange rates (REERs). Along with the standard literature, it is assumed that REERs are important summary measures of shifts in competitiveness. Section 3 is devoted to trade developments; they are linked to the REERs. We present and analyze gross measures such as exports to the gross domestic product (GDP) ratio, external exports, export/import ratio, the share of EMU country exports in world exports and the role of high-tech trade. Section 4 deals with the shifts in labor force performance and section 5 is devoted to the most comprehensive measures which are GDP and gross national income (GNI) developments. The paper closes with conclusions.

Suggested Citation

  • Kowalski, Tadeusz & Pietrzykowski, Maciej, 2010. "The economic and monetary union vs. shifts in competitiveness of member states," MPRA Paper 33995, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:33995
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/33995/1/MPRA_paper_33995.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Égert, Balázs, 2002. "Investigating the Balassa-Samuelson hypothesis in transition : Do we understand what we see?," BOFIT Discussion Papers 6/2002, Bank of Finland, Institute for Economies in Transition.
    2. Balázs Egert, 2007. "Real Convergence, Price Level Convergence and Inflation Differentials in Europe," CESifo Working Paper Series 2127, CESifo Group Munich.
    3. Kowalski, Tadeusz & Kowalski, Pawel & Wihlborg, Clas, 2007. "Poland. The EMU entry strategy vs. the monetary issues," MPRA Paper 42599, University Library of Munich, Germany, revised 2007.
    4. Balázs Egert, 2002. "Investigating the Balassa-Samuelson hypothesis in the transition: Do we understand what we see? A panel study," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 10(2), pages 273-309, July.
    5. Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March.
    6. Nauro F. Campos & Abrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 793-836, September.
    7. Charles van Marrewijk, 2004. "An introduction to international money and foreign exchange markets," International Finance 0410006, EconWPA.
    8. Balázs Égert, 2007. "Real Convergence, Price Level Convergence and Inflation in Europe," Working Papers 267, Bruegel.
    9. Iulia Siedschlag & Juergen von Hagen, 2006. "Macroeconomic Adjustment in the New EU Member States," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    10. Dyson, Kenneth & Featherstone, Kevin, 1999. "The Road To Maastricht: Negotiating Economic and Monetary Union," OUP Catalogue, Oxford University Press, number 9780198296386.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aleksandra Gawel, 2014. "Entrepreneurship in Relation to the Competitive Potential and Position of Economies," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 10(01), pages 9-20.
    2. Kowalski, Tadeusz, 2013. "Globalization and Transformation in Central European Countries: The Case of Poland," MPRA Paper 59306, University Library of Munich, Germany.
    3. Kowalski, Tadeusz, 2012. "The economic and monetary union countries vs. the global crisis," MPRA Paper 37942, University Library of Munich, Germany.

    More about this item

    Keywords

    Euro zone; competitiveness; convergence; economic policy; exchange rate;

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:33995. 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: (Joachim Winter) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.