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Article Dans Une Revue Journal of Comparative Economics Année : 2003

The Balassa-Samuelson effect in Central and Eastern Europe: Myth or reality?

Balázs Égert
  • Fonction : Auteur
Imed Drine
  • Fonction : Auteur
Kirsten Lommatzsch
  • Fonction : Auteur

Résumé

This paper studies the Balassa-Samuelson effect in nine Central and East European countries. Using panel cointegration techniques, we find that the productivity growth differential in the open sector leads to inflation in non-tradable goods. Because of the low share of non-tradables and the high share of food items in addition to regulated prices, the consumer price index is misleading when analyzing the Balassa-Samuelson effect. Consequently, the appreciation of the real exchange rate, which has been established as a stylized fact over the last decade, is caused only partly by the Balassa-Samuelson effect. We identify a trend increase in the prices of tradable goods as a contributing explanation. © Association for Comparative Economic Studies. Published by Elsevier Inc. All rights reserved.

Dates et versions

hal-02878012 , version 1 (22-06-2020)

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Citer

Balázs Égert, Imed Drine, Kirsten Lommatzsch, Christophe Rault. The Balassa-Samuelson effect in Central and Eastern Europe: Myth or reality?. Journal of Comparative Economics, 2003, 31 (3), pp.552--572. ⟨10.1016/S0147-5967(03)00051-9⟩. ⟨hal-02878012⟩

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