The Balassa–Samuelson effect in Romania – The role of regulated prices

Dumitru, Ilie; Jianu, Ionela

doi:10.1016/j.ejor.2007.12.026

Cited by 12 publications

(4 citation statements)

References 11 publications

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“…Galbi (2001) showed how empirical evidence concerning customer acquisition costs, customer switching costs, and churn among service providers may be used for regulating price adjustment. Dumitru and Jianu (2009) showed that the Balassa-Samuelson effect is expected to result in higher inflation in Romania. Wang (2013) proposed a grey linear control system for regulating the price of China's real estate.…”

Section: Literature Reviewmentioning

confidence: 99%

Mutual Incentive Mechanism for a Supply Chain Channel of Seasonal Products under Double Price Regulation

et al. 2016

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Section: Literature Reviewmentioning

confidence: 99%

Mutual Incentive Mechanism for a Supply Chain Channel of Seasonal Products under Double Price Regulation

et al. 2016

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“…Dobrinsky (2003) tests the B-S hypothesis for 13 candidate countries to join EU in 2004, observing the existence of a negative relation between changes in real exchange rates and relative productivity. Dumitru and Jianu (2008) analyze the case of Romania. They find that had non-tradable prices not been regulated, the B-S effect would have been of 2.6% approximately, and not of 0.6%.…”

Section: Tnt Prices and Tfp Theoretical And Empirical Backgroundmentioning

confidence: 99%

The Balassa-Samuelson Hypothesis and Elderly Migration

Montealegre¹,

Acosta²,

González³

2014

Ensayos sobre Política Económica

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We present a model with two Overlapping Generations (young and old) and two final goods: a) a tradable good that is produced using capital and labor, and b) a non-tradable good that is produced using labor as unique input. We maintain the fundamental assumption of perfect factor mobility between sectors so the model is consistent with the Balassa-Samuelson hypothesis. On top of this, we allow for one of the two generations (the elderly) to migrate between economies. Given the general equilibrium structure of our model, we can examine the effect of the propensity to save on migration and the relative price of the non-tradable good. In this setting, we find that the elderly have incentives to migrate from economies where productivity is high to economies with low productivity because of the lower cost of living (in more general terms, the elderly migrate from wealthy countries to countries with lower incomes). We also find that, for countries with lower incomes, elderly migration has a positive effect on wages and capital accumulation.

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“…The findings during the domestic evaluation of the BS effect showed that the estimation result can vary dependently on the used type of model, the classic or extended one (Dumitru and Ionela, 2009). The BSH can be applied for one economy, as well as for a comparison of RER between two or several countries.…”

Section: Introductionmentioning

confidence: 99%

The impact of real exchange rates on price competitiveness in Eastern European countries

Proskurnina

Kähler

Cervantes-Martínez

2020

Economics of Development

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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.

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The Balassa–Samuelson effect in Romania – The role of regulated prices

Cited by 12 publications

References 11 publications

Mutual Incentive Mechanism for a Supply Chain Channel of Seasonal Products under Double Price Regulation

Mutual Incentive Mechanism for a Supply Chain Channel of Seasonal Products under Double Price Regulation

The Balassa-Samuelson Hypothesis and Elderly Migration

The impact of real exchange rates on price competitiveness in Eastern European countries

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