Exchange rates and European countries’ export prices: An empirical test for asymmetries in pricing to market behavior

The subject of this paper is empirical research on studies of exchange rates in Eastern European countries, such as Albania, Bulgaria, Bosnia and Herzegovina, Belarus, Czech Republic, Estonia, Croatia, Hungary, Latvia, Lithuania, Moldova, (North) Macedonia, Montenegro, Poland, Romania, Serbia, Slovakia, and Slovenia, in order verify the validity of theories that explain these changes. This research aims to explain the mixed evidence of the Balassa-Samuelson effect in Ukraine, taking into account the intentions of Ukraine to become a member of the European Union. Unlike previous works, the attention is shifted to a review of empirical evidence and the identification of main factors that limit the ability to verify the theory. The main conclusion is that all the currencies studied underwent substantial real appreciations during the study period. Thus, it can be concluded that an adequate monetary policy in countries under study is very important, given that local exchange markets are not sustainable enough and the volatility of exchange operations is higher than in countries with developed economies. However, the Balassa-Samuelson Hypothesis (BSH) can explain the impact of the real exchange rate due to changes in productivity in countries in transition.

Download Full-text

Analysis of the Specifics of Effectiveness in High-Tech Companies

WORLD OF ECONOMICS AND MANAGEMENT ◽

10.25205/2542-0429-2020-20-4-113-137 ◽

2020 ◽

Vol 20 (4) ◽

pp. 113-137

Author(s):

Anton A. Goryushkin

Keyword(s):

Production Management ◽

Empirical Test ◽

Global Market ◽

European Countries ◽

High Tech ◽

Intensity Level ◽

Eastern European ◽

Knowledge Intensive ◽

Student’S T ◽

Eastern European Countries

High-tech sector is recognized as an important long-term priority for the development of any economy; therefore, purposeful support and encouraging the development of this sector requires highlighting the specificities of high-tech and knowledge-intensive companies. This study provides an empirical test of the existence of differences in some parameters between the companies in high-tech and traditional sectors of the economy with BEEPS microeconomic data base by the following characteristics: level of research and development intensity; level of personnel qualification; technological and financial capabilities; business orientation to the global market. The test is based on the Student’s t-test, i.e. statistical comparison of the average values of the parameters for the companies in the specified sectors. For verification, the data from direct surveys of domestic manufacturing and production service companies, the data from the surveys of companies from the EAEU countries and some Eastern European countries were used. It has been revealed that in Eastern European countries, high-tech companies of any sectors more heavily invest in R & D. In Russia, this is true only for the production sector. At the same time, the level of innovative activity for domestic production companies is generally consistent with the level of the companies in other countries under study. Like in many European companies, a significantly large proportion of domestic high-tech companies pays attention to the introduction of new methods f production, management, and product promotion. The need to acquire or rent equipment is equally important for high-tech and low-tech companies, and there are no significant differences in access to financial resources. It has been also revealed that the Russian high-tech production companies are more focused on the national market, whereas the low-tech companies are orientated to the local one. At the same time, the high-tech business is still characterized by a higher share of products shipped for export as compared to the average level of industrial exports.

Download Full-text

Effective Exchange Rates in Central and Eastern European Countries: Cyclicality and Relationship with Macroeconomic Fundamentals

Review of Economic Perspectives ◽

10.1515/revecp-2015-0015 ◽

2015 ◽

Vol 15 (2) ◽

pp. 157-177 ◽

Cited By ~ 1

Author(s):

Daniel Stavárek ◽

Cynthia Miglietti

Keyword(s):

Exchange Rate ◽

Exchange Rates ◽

Flexible Exchange Rate ◽

European Countries ◽

Eastern European ◽

Macroeconomic Fundamentals ◽

Effective Exchange ◽

Exchange Rate Arrangements ◽

Eastern European Countries

Abstract This paper examines the evolution of effective exchange rates in nine Central and Eastern European countries in terms of development trends, volatility and cyclicality. Consequently, it provides direct empirical evidence on the nature of the relationship between effective exchange rates and selected macroeconomic fundamentals, addressing a key precondition of numerous exchange rate determination models and theories that attempt to explain the role of exchange rates in the economy. The results suggest that flexible exchange rate arrangements are reflected in both nominal and real effective exchange rates having higher volatility and variability. Furthermore, the results provide mixed evidence in terms of intensity, direction and cyclicality, but show a weak correlation between exchange rates and fundamentals. Sufficiently high coefficients are found only for money supply. Consequently, using fundamentals for the determination of exchange rates and using the exchange rate to explain economic development may be of limited use for the countries analyzed.

Download Full-text