On the evolution of competitiveness in Central and Eastern Europe: is it broken?
In this article, we analyse the evolution of the real effective exchange rate (REER) as a measure of competitiveness for a group of Central and Eastern European countries. To do this, we employ unit-root tests with breaks and estimate the equations with structural breaks. Our results show that even though the REERs have become flatter, which means less competitiveness is lost against main trading partners, they have also become less mean-reverting, suggesting that shocks now tend to have longer effects.
Generalitat Valenciana, Grant/Award Number: AICO/2021/005
Universitat Jaume I, Grant/Award Number: UJIB2022-03
- Business and Economics
Published inInternational Journal of Finance and Economics
- VoR (Version of Record)
Rights holder© The Authors
Publisher statementThis is an Open Access Article. It is published by Wiley under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence (CC BY-NC-ND). Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/