Real Convergence, Capital Flows and Competitiveness in Central and Eastern Europe

Konferenzbeitrag

The paper scrutinizes the role of wages and capital flows for competitiveness in the new EU member states in the context of real convergence. For this purpose it extends the seminal Balassa-Samuelson model by international capital markets. The augmented Balassa-Samuelson model is linked to the monetary overinvestment theories of Wicksell and Hayek in order to trace cyclical deviations of real exchange rates from the productivity-driven equilibrium path. Panel estimations for the period from 1993 to 2008 reveal mixed evidence for the role of capital markets for both the economic catch-up process and international competitiveness of the Central and Eastern European countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Capital flows to the EU New Member States ; No. E3-V2

Classification and Topics

• Classification: Wirtschaft ; Trade and Labor Market Interactions ; Foreign Exchange ; Current Account Adjustment; Short-term Capital Movements
• Subject: exchange rate regime ; wages ; Central and Eastern Europe ; EMU accession ; panel model

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Zemanek, Holger ; Belke, Ansgar ; Schnabl, Gunther
• Event: Veröffentlichung
• (who): Verein für Socialpolitik
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/37211
• Last update: 10.03.2025, 11:45 AM CET