EFZG working paper series, No. 04, 2008.
Ostalo
Structural Breaks and Purchasing Power Parity in the CEE and Post-War former Yugoslav States
Robert J. Sonora
orcid.org/0000-0003-4713-7082
; School of Business Administration, Fort Lewis College
Josip Tica
orcid.org/0000-0001-7937-1573
; Ekonomski fakultet u Zagrebu
Sažetak
In this paper we investigate purchasing power parity in the CEE and post-War former-Yugoslav states during
EU integration process 1994-2006. This work stems from longer term tests of real exchange rate convergence
in the former Yugoslavia. This period is of interest on two fronts: First, it investigates real exchange dynamics
in the aftermath of war financed in part through seignorage; and second, we investigate the level of economic
integration with the European Union following the break up of the former Yugoslavia. Given the short run
nature of the available data we use panel unit root tests with and without structural breaks. Preliminary results
suggest that real exchange rates between the former Yugoslav states and Germany are stationary when breaks
are accounted for. Given the size of nominal shocks in the region, particularly in the early 1990s, preliminary
results indicate that convergence to the long run equilibrium is relatively quick.
Ključne riječi
purchasing power parity; Economic Integration; panel unit root tests
Hrčak ID:
137166
URI
Datum izdavanja:
5.6.2008.
Posjeta: 668 *