Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/37211
Authors: 
Zemanek, Holger
Belke, Ansgar
Schnabl, Gunther
Year of Publication: 
2010
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Capital flows to the EU New Member States E3-V2
Abstract: 
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.
Subjects: 
exchange rate regime
wages
Central and Eastern Europe
EMU accession
panel model
JEL: 
F16
F31
F32
Document Type: 
Conference Paper

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