IMF Working Papers

Competitiveness in Bulgaria: An Assessment of the Real Effective Exchange Rate

By Piritta Sorsa, Dimitar Chobanov

March 1, 2004

Download PDF

Preview Citation

Format: Chicago

Piritta Sorsa, and Dimitar Chobanov. Competitiveness in Bulgaria: An Assessment of the Real Effective Exchange Rate, (USA: International Monetary Fund, 2004) accessed November 23, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper presents an empirical analysis of the medium- and long-term determinants of the real (effective) exchange rate (RER) of the Bulgarian lev using elements from the natural real exchange rate (NATREX) and the behavioral equilibrium exchange rate (BEER) approaches. The results indicate that the RER is driven by fundamentals, including labor productivity, terms of trade, world real interest rates, gross savings, and foreign direct investment. The model also shows that there is no significant misalignment of the Bulgarian lev.

Subject: Balance of payments, Foreign direct investment, Foreign exchange, International trade, Production, Productivity, Real effective exchange rates, Real exchange rates, Terms of trade

Keywords: BEER, Bulgaria, Bulgarian lev, Competitiveness, Exchange rate, Foreign direct investment, Fundamental determinants, NATREX, Overvalued exchange RER, Productivity, Productivity data, Productivity development, Productivity differential, Real effective exchange rates, Real exchange rates, RER., Saving, Terms of trade, Terms of trade index, WP

Publication Details

  • Pages:

    25

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2004/037

  • Stock No:

    WPIEA0372004

  • ISBN:

    9781451845600

  • ISSN:

    1018-5941

You May Also Be Interested In...

Remittances in Times of Uncertainty: Understanding the Dynamics and Implications

November 22, 2024

Bilateral Trade in Services and Exchange Rates: Evidence of Dominant Currency Pricing

November 22, 2024

The Fund's Income Position for FY 2024--Actual Outcome

November 21, 2024

Fourteenth Periodic Monitoring Report On The Status Of Management Implementation Plans In Response To Board-Endorsed IEO Recommendations

November 21, 2024