Real Effective Exchange Rate and Industrial Productivity in Croatia: Wavelet Coherence Analysis

Bošnjak, Mile; Kordić, Gordana; Novák, Ivan

doi:10.2478/jeb-2021-0003

Cited by 4 publications

(3 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This can lead to a decline in export demand, resulting in potential job losses in sectors reliant on export markets (Bošnjak, 2021). Conversely, when the REER depreciates, exports become more competitive internationally, leading to increased demand for domestically produced goods and supporting employment in export-oriented industries (Bošnjak et al, 2021). Empirical studies provide evidence of a significant relationship between changes in the REER and employment fluctuations in countries such as China and Mexico, highlighting the importance of exchange rate movements in shaping labor market outcomes (Hegeland & Taalbi, 2019).…”

Section: Fluctuations In the Real Effective Exchange Rate And Unemplo...mentioning

confidence: 99%

Factor Input Prices and Unemployment in Uganda

Musiita,

Kijjambu,

Katarangi

2024

JEBS

View full text Add to dashboard Cite

Examining the impact of input costs on unemployment in Uganda, this study employed an ARDL model based on the Efficiency Wage Theory. Analyzing annual data from 1987 to 2019 and controlling for economic size and currency value, the research found that lending interest rates, real exchange rates, and GDP have a short-term negative impact on unemployment, suggesting an initial rise. However, the study highlights a positive long-run relationship between these factors and unemployment, indicating their potential to contribute to lower unemployment over time. Interestingly, no significant short-run or long-run effect of global crude oil prices on Uganda's unemployment was identified. These findings suggest that while central bank policies promoting lower interest rates can encourage short-term investment and potentially lower unemployment, long-term economic growth is also crucial. Furthermore, the lack of impact from oil prices underscores the need for Ugandan policymakers to diversify the economy beyond oil dependence for sustainable unemployment reduction.

show abstract

Section: Fluctuations In the Real Effective Exchange Rate And Unemplo...mentioning

confidence: 99%

Factor Input Prices and Unemployment in Uganda

Musiita,

Kijjambu,

Katarangi

2024

JEBS

View full text Add to dashboard Cite

show abstract

“…In Malaysia, Sadia,et al [4] found the lending rate and inflation were considerable determinants of the volatility in reer in the short-term while in the long-term, GDP deflator, total export/GDP ratio, and domestic inflation rate were the significant drivers of volatility in the reer. In Croatia, Bošnjak, et al [5] found significant connection between reer and industrial productivity basing estimation on the Wavelet Coherence method. The study by Ogundipe & Lawal (2014) employs an econometric approach to analyze the relationship between the reer and various macroeconomic variables.…”

Section: Survey Of Relevant Literaturementioning

confidence: 99%

Factors Responsible for Movements in Real Effective Exchange Rate of Selected African Countries

Umoru,

Abugewa-Ejegi,

Effiong

2023

AJEBA

View full text Add to dashboard Cite

The study examined the determinants of real effective exchange rate on selected African countries, namely, Nigeria, Libya, Angola, Egypt, Gabon, Ghana, and Chad over the sample period of 1980 to 2023. The vector error correction methodology was used in the study. The results suggest the following findings; In Nigeria, variations in the real effective exchange rate responded significantly and positively to Brent crude oil prices, domestic inflation rate, external debt burden, the volume of foreign exchange reserves, and prices of primary export. It also responded negatively to foreign investment flows. Whenever the real effective exchange rate deviated from its equilibrium, 74% of its disequilibrium was restored in Nigeria. In Libya, the response of real effective exchange rate was positive and significantly related to commodity prices of primary export but responded negatively and significantly to Brent crude oil prices, foreign investment inward stock, and foreign reserve holdings. In addition, 57% of the disequilibrium in the real effective exchange rate of the Libya currency was restored to the long-term value. In Angola, it was found that the variations in the real effective exchange rate had a positive and significant response with Brent crude oil prices and foreign investment inflows. It however responded negatively with a significance balance of payments and the volume of foreign reserves. About 60% of the disequilibrium in the real effective exchange rate was restored to the long-term value in Angola. In Egypt, the real effective exchange rate responded positively with significance to Brent crude oil prices, foreign investment inflows, and prices of primary export. Additionally, it responded negatively and significantly to the domestic inflation rate and external reserve holdings. Within the period of study in Egypt, 53% of the disequilibrium in the real effective exchange rate was restored to equilibrium. In Gabon, variations in the real effective exchange rate had a positive and significant response with Brent crude oil prices, real interest rate, external debt burden, and the volume of foreign exchange reserves. Also in Gabon, the real effective exchange rate responded negatively and significantly to the inflation rate and prices of primary export. Accordingly, 82% of the disequilibrium in the real effective exchange rate was restored to equilibrium. The Ghanaian real effective exchange rate relative to the dollar responded significantly and positively to Brent crude oil prices, domestic inflation rate, foreign debt burden, and foreign investment flows while it negatively responded to the Ghanaian balance of payment position. Each time the real effective exchange rate of the Ghanaian cedi deviated from its equilibrium value, 79% of its disequilibrium was restored. In Chad, variations in the real effective exchange rate responded significantly but negatively to the domestic inflation rate while it positively and significantly responded to Brent crude oil prices, external balance position, the volume of foreign reserve holdings, and foreign direct investment inflows. Also, whenever the real effective exchange rate deviated from its equilibrium value in Chad, 65% of its disequilibrium was restored in the long run. Based on these results, policymakers should focus on addressing structural constraints, commodity price fluctuations, and improve the business environment by anchoring policies of economic stability to boost competitiveness in trade and industry. There is also the need for policymakers to consider country-specific factors when formulating exchange rates.

show abstract

“…Štoviše, glavna prepreka jačanju hrvatskog regionalnog izvoza je nedostatak domaće potražnje i smanjenje produktivnosti rada (Stojčić, Bečić & Vojinić, 2012;Jakšić, Erjavec & Cota, 2019), dok su geografska udaljenost glavnih gradova i broj stanovnika starijih od 15 godina u zemlji partnerici (tj. veličina tržišta) glavne odrednice robnog izvoza (Bošnjak, Novak i Bašić, 2022), dok je realni efektivni devizni tečaj, odnosno deprecijacija realnog deviznog tečaja, pozitivno povezana s produktivnošću industrije (Bošnjak, Kordić & Novak, 2021), a što se posebice odnosi na turizam (Bošnjak, Bilas & Franc, 2018). Finalno, Stojčić i Vojinić (2022) ispitivali su posljedice diverzifikacije i koncentracije izvoza na ulazak, opstanak i rast poduzeća na tržištu tehnikama prostorne ekonometrije na financijskim podacima poduzeća.…”

Section: Pregled Literatureunclassified

Export Diversification and Productivity Growth: Firm-Based Sectoral Analysis in the Republic of Croatia

Bašić¹,

Novák²,

Bošnjak³

2023

Ekonomska misao i praksa

View full text Add to dashboard Cite

Ovaj rad ispituje utjecaj diverzifikacije izvoza na rast ukupne produktivnosti faktora proizvodnje tristo najvećih izvoznika u Republici Hrvatskoj grupiranih u 13 industrijskih sektora. U radu se koriste godišnji financijski podaci poduzeća za razdoblje od 2006. do 2015. godine agregirani na sektorsku razinu. Empirijska analiza se koristi panel kointegracijom (PMG/ARDL) kako bi ispitala učinak diverzifikacije izvoza u kratkom i dugom roku na ukupnu produktivnost faktora proizvodnje. Diverzifikacija izvoza mjeri se sektorskom klasifikacijom koncentracije vrijednosti izvoza za što se koristi Herfindahl-Hirschmanov indeks. Rezultati pokazuju dugoročnu kointegraciju koncentracije izvoza i ukupne produktivnosti faktora proizvodnje pri čemu veća koncentracija izvoza vodi većoj produktivnosti faktora proizvodnje. Ograničenja ovog istraživanja uključuju vremenski okvir analize zbog nemogućnosti pristupa podacima nakon 2015. godine, te mjeru diverzifikacije izvoza koja se može promatrati u odnosu na izvoz pojedinog industrijskog sektora, proizvoda ili na određena geografska područja, pri čemu su posljednje dvije mjere izostavljene iz analize zbog nemogućnosti pristupa podacima.

show abstract

Real Effective Exchange Rate and Industrial Productivity in Croatia: Wavelet Coherence Analysis

Cited by 4 publications

References 17 publications

Factor Input Prices and Unemployment in Uganda

Factor Input Prices and Unemployment in Uganda

Factors Responsible for Movements in Real Effective Exchange Rate of Selected African Countries

Export Diversification and Productivity Growth: Firm-Based Sectoral Analysis in the Republic of Croatia

Contact Info

Product

Resources

About