What Drives the Non-price Competitiveness of the EU New Member States
| Author(s): | PhDr. Jaromír Baxa Ph.D., Ondřej Sláma † prof. Ing. Michal Mejstřík CSc., Ondřej Sláma Mgr. Eva Michalíková , Ondřej Sláma |
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| Type: | Article in collection |
| Year: | 2018 |
| Number: | 0 |
| ISSN / ISBN: | |
| Published in: | Proceedings of int. conference ICPEMS |
| Publishing place: | Athens |
| Keywords: | Competitiveness, non-price competitiveness, real exchange rates, export market shares, Bayesian model averaging |
| JEL codes: | C32, E52, F41 |
| Suggested Citation: | |
| Grants: | GACR 402/16-02392S Competitiveness and Exchange Rate: Institutions and Innovations |
| Abstract: | Before the Great Recession, the growth of the EU New Member States was driven by gains in non-price competitiveness. It allowed for significant appreciation of their real exchange rates and for increasing export market shares at the same time. This paper discusses the post-crisis developments in non-price competitiveness of these countries. We show that the pre-crisis growth of non-price competitiveness has decreased substantially, and it has halted or even has fallen into negative territory in some countries. Therefore, the developments of the non-price competitiveness resembles the dynamics of the overall economic growth of the EU New Member States and their convergence towards the core of the EU, notably to Germany. Furthermore, we study the determinants of non-price competitiveness by using Bayesian model averaging and we assess the relative contribution of non-price competitiveness to the dynamics of exports of the EU New Member States. |
| Downloadable: |
presentation for Athens 2018 |
