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On the evolution of competitiveness in Central and Eastern Europe: Is it broken?

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  • Simeon Coleman
  • Juan Carlos Cuestas

Abstract

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.

Suggested Citation

  • Simeon Coleman & Juan Carlos Cuestas, 2024. "On the evolution of competitiveness in Central and Eastern Europe: Is it broken?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2911-2926, July.
    • Handle: RePEc:wly:ijfiec:v:29:y:2024:i:3:p:2911-2926
    DOI: 10.1002/ijfe.2810
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    Cited by:

    1. Juan Carlos Cuestas, 2019. "Quantile regressions, asymmetric adjustment and crisis: the case of EU real exchange rates," Working Papers 2019/09, Economics Department, Universitat Jaume I, Castellón (Spain).

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    More about this item

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F15 - International Economics - - Trade - - - Economic Integration

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