Balassa-Samuelson Effect in 10 CEE Countries: Does Productivity Influence their Price Convergence to EU15?

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Balassa-Samuelson Effect in 10 CEE Countries: Does Productivity Influence their Price Convergence to EU15?

Popis výsledku v původním jazyce

This paper deals with Balassa-Samuelson (BS) effect in Central and East European (CEE) countries. This theory claims that higher growth of productivity in tradable sector leads to growth of prices in non-tradable one. Lately, we can see price convergence between former members of European Union (EU15) and new members of European Union (CEE countries). BS effect is one of possible explanations of this fact. The aim of this paper is to estimate this effect in 10 CEE countries. We try to investigate whether growth of productivity in CEE countries leads to their price convergence to EU15 or not. We use OLS regression in 1995Q2- 2017Q1 periods. We find out that BS effect is important in most of CEE countries. Unlike other studies, some traditional assumptions of this theory are tested in this one. We find out that (i) PPP theory is not valid in CEE countries and that (ii) wages in tradable and non-tradeable sectors tend to be equalized. Therefore, the estimated model is corrected according to these conditions.

Název v anglickém jazyce

Balassa-Samuelson Effect in 10 CEE Countries: Does Productivity Influence their Price Convergence to EU15?

Popis výsledku anglicky

This paper deals with Balassa-Samuelson (BS) effect in Central and East European (CEE) countries. This theory claims that higher growth of productivity in tradable sector leads to growth of prices in non-tradable one. Lately, we can see price convergence between former members of European Union (EU15) and new members of European Union (CEE countries). BS effect is one of possible explanations of this fact. The aim of this paper is to estimate this effect in 10 CEE countries. We try to investigate whether growth of productivity in CEE countries leads to their price convergence to EU15 or not. We use OLS regression in 1995Q2- 2017Q1 periods. We find out that BS effect is important in most of CEE countries. Unlike other studies, some traditional assumptions of this theory are tested in this one. We find out that (i) PPP theory is not valid in CEE countries and that (ii) wages in tradable and non-tradeable sectors tend to be equalized. Therefore, the estimated model is corrected according to these conditions.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2018

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of the 4th International Conference on European Integration 2018 : ICEI 2018 : May 17-18, 2018, Ostrava, Czech Republic. 1st part

ISBN

978-80-248-4169-4

ISSN

2571-029X

e-ISSN

neuvedeno

Počet stran výsledku

9

Strana od-do

41-49

Název nakladatele

VŠB - Technical University of Ostrava

Místo vydání

Ostrava

Místo konání akce

Ostrava

Datum konání akce

17. 5. 2018

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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