Dumitru, Ionut (2008): Efectul Balassa-Samuelson in Romania. Published in: Romania in Uniunea Europeana (english: Romania in European Union) No. 36 (2008): pp. 11-46.
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This paper deals with the Balassa-Samuelson effect in Romania. Using the cointegration technique, the main conclusions of the paper are that in the period 1998-2006 the average annual rate of inflation generated by the Balassa-Samuelson effect in Romania was between 0.11% in 2005 and 0.9% in 2000 in the case of the classical model (0.4% on average); in the extended model, which is considered more appropriate by us, the impact on inflation is higher and ranges between 0.69% in 2005 and 4.76% in 2000 (2.18% on average in 1998-2006). Regarding the impact of the Balassa-Samuelson effect on the real appreciation of the exchange rate, the results of the paper revealed that the real appreciation of the exchange rate due to the Balassa-Samuelson effect was between 0.24% and 1.94% in the case of the classical model and between 0.73% and 5.06% in the case of the extended model (2.31% on average in 1998-2006). The paper revealed also that the regulated prices and the price convergence play an important role in the Balassa-Samuelson effect in Romania.
|Item Type:||MPRA Paper|
|Original Title:||Efectul Balassa-Samuelson in Romania|
|English Title:||Balassa-Samuelson effect in Romania|
|Keywords:||Balassa-Samuelson effect, convergence, relative prices, regulated prices|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation
F - International Economics > F3 - International Finance > F31 - Foreign Exchange
|Depositing User:||Ionut Dumitru|
|Date Deposited:||18. Nov 2009 09:27|
|Last Modified:||14. Feb 2013 06:19|
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