Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/190473
Authors: 
Baksa, Dániel
Kónya, István
Year of Publication: 
2017
Series/Report no.: 
IEHAS Discussion Papers MT-DP - 2017/12
Abstract: 
This paper views the growth and convergence process of the four Visegrad economies - the Czech Republic, Hungary, Poland and Slovakia - through the lens of the open economy, stochastic neoclassical growth model. We use a unified framework to understand both the long-run convergence path and fluctuations around it. Our empirical exercise highlights both the role of initial conditions such as indebtedness and capital intensity, and random shocks in the growth process. In particular, we explore the importance of the external interest rate premium, and its role in driving investment and the trade balance.
Subjects: 
stochastic growth
technology shocks
interest premium
small open economy
Bayesian estimation
JEL: 
E13
O11
O41
O47
ISBN: 
978-615-5594-94-6
Document Type: 
Working Paper
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