Competitiveness and the Equilibrium Real Exchange Rate in Croatia
Author: Izabela Karpowicz
Publisher:
Published: 2002
Total Pages: 36
ISBN-13:
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The Effects of Exchange Rate Change on the Trade Balance in Croatia
Author: Tihomir Stucka
Publisher: International Monetary Fund
Published: 2004-04
Total Pages: 36
ISBN-13:
DOWNLOAD EBOOKA reduced-form model approach was used to estimate the trade balance response to permanent domestic currency depreciation. For this purpose, long-run and short-run effects were estimated, using three modeling methods along with two real effective exchange rate measures. On average, a 1 percent permanent depreciation improves the equilibrium trade balance by between 0.94 percent and 1.3 percent. The new equilibrium is established after approximately 2.5 years. Evidence of the J-curve is also found. Overall, in the light of the results obtained, it is questionable whether permanent depreciation is desirable to improve the trade balance, taking into account potential adverse effects on the rest of the economy.
Balance of Payments, Exchange Rates, and Competitiveness in Transition Economies
Author: Mario I. Blejer
Publisher: Springer Science & Business Media
Published: 2007-08-23
Total Pages: 501
ISBN-13: 0585313466
DOWNLOAD EBOOKIntegrating transition economies into the global commercial and trade market system is a prolonged and risky process. This book is a collection of studies dealing with the different issues related to the liberalization of external relations in economies moving from a socialist to a market-based system The focus is on external sector developments, and the topics deal with balance of payments conditions, exchange rate policies and regimes, international competitiveness, international capital flows, trade, and other matters related to the integration of transition economies into the world economy. An understanding of the principles involved and of the experiences of both transition and advanced economies during this process is crucial to ensure its ultimate success. Written by internationally recognized scholars, the chapters cover these issues in a systematic manner. The first section treats current account developments, capital flows, and exchange rate policies in transition countries, the second section deals with specific issues related to international trade, and the final section consists of six specific country experiences. In this final section, a chapter dealing with the Russian Federation discusses the collapse of the ruble in August 1998.
Equilibrium Exchange Rates in Transition Economies
Author: Lionel Halpern
Publisher: International Monetary Fund
Published: 1996-11-01
Total Pages: 40
ISBN-13: 145185479X
DOWNLOAD EBOOKA stylized fact of the transition process is an early profound exchange rate depreciation followed by continuing real appreciation. Absent historical reference points, it is difficult to judge whether the real appreciation is threatening competitiveness. This paper interprets the stylized facts and offers estimates of the equilibrium real exchange rate based on an international comparison of dollar wages and on a study of the dynamics of real exchange rates in several transition economies. The results suggest that the process of real appreciation is a combination of a return to equilibrium following the early overshooting and equilibrium appreciation.
The Effects of Exchange Rate Change on the Trade Balance in Croatia
Author: Tihomir Stuka
Publisher:
Published: 2006
Total Pages: 30
ISBN-13:
DOWNLOAD EBOOKA reduced-form model approach was used to estimate the trade balance response to permanent domestic currency depreciation. For this purpose, long-run and short-run effects were estimated, using three modeling methods along with two real effective exchange rate measures. On average, a 1 percent permanent depreciation improves the equilibrium trade balance by between 0.94 percent and 1.3 percent. The new equilibrium is established after approximately 2.5 years. Evidence of the J-curve is also found. Overall, in the light of the results obtained, it is questionable whether permanent depreciation is desirable to improve the trade balance, taking into account potential adverse effects on the rest of the economy.
Export Performance and External Competitiveness in the Former Yugoslav Republic of Macedonia
Author: Eva Gutierrez
Publisher:
Published: 2006
Total Pages: 28
ISBN-13:
DOWNLOAD EBOOKThis paper reviews a broad set of indicators of competitiveness in the Macedonian economy and estimates the equilibrium real effective exchange rate (REER) using different methodologies. Although the REER is broadly in equilibrium at present, structural factors are found to hamper competitiveness. While a more competitive exchange rate might improve short-term export performance, sustained improvements require enhanced productivity and resource reallocation to more dynamic sectors, which depends on reforms to improve the business environment
Republic of Croatia
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 2002-08-12
Total Pages: 100
ISBN-13: 1451817355
DOWNLOAD EBOOKThis Selected Issues paper and Statistical Appendix examines the revenue and expenditure trends of the Croatia from a cross-country perspective and illustrates the medium-term fiscal outlook under two scenarios: one assumes gradual fiscal adjustment and structural reforms; the other assumes stronger fiscal adjustment and a more aggressive approach to structural reforms. The paper analyzes Croatia’s revenue structure to provide a perspective for the medium-term revenue policy. It also identifies the expenditure items that could be streamlined over the medium term, and presents alternative medium-term fiscal frameworks.
Real Exchange Rates, Economic Complexity, and Investment
Author: Steve Brito
Publisher: International Monetary Fund
Published: 2018-05-10
Total Pages: 21
ISBN-13: 1484356349
DOWNLOAD EBOOKWe show that the response of firm-level investment to real exchange rate movements varies depending on the production structure of the economy. Firms in advanced economies and in emerging Asia increase investment when the domestic currency weakens, in line with the traditional Mundell-Fleming model. However, in other emerging market and developing economies, as well as some advanced economies with a low degree of structural economic complexity, corporate investment increases when the domestic currency strengthens. This result is consistent with Diaz Alejandro (1963)—in economies where capital goods are mostly imported, a stronger real exchange rate reduces investment costs for domestic firms.
The Competitiveness of Croatia
Author: Slavo Radošević
Publisher:
Published: 1993
Total Pages: 242
ISBN-13:
DOWNLOAD EBOOKRepublic of Croatia
Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
Published: 2014-05-19
Total Pages: 74
ISBN-13: 148439691X
DOWNLOAD EBOOKThis 2014 Article IV Consultation highlights that Croatia remains stuck in an unusually drawn out recession. In 2013, real GDP contracted for the 5th consecutive year, and stands now at less than 90 percent of the end-2008 level. Unemployment has risen to 17 percent. Domestic demand remains depressed as corporations and households focus on reducing excessive debts accumulated in the 2000s. Exports and foreign direct investment are also feeble. The outlook is for an additional contraction in 2014 of almost 1 percent. Real domestic demand would remain feeble, reflecting both weak private sector demand and fiscal consolidation.
