Competitiveness in Transition Economies: What Scope for Real Appreciation?
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Summary:
This paper estimates equilibrium dollar wages for 15 transition economies. Equilibrium dollar wages are interpreted as full employment wages consistent with a country’s physical and human capital endowment, and estimated by regressing actual dollar wages on productivity and human capital proxies in a short (1990-95) panel of 85 countries. The main results are: (i) equilibrium dollar wages have appreciated steadily in the Baltic countries and fast-reforming Central and Eastern European (CEE) transition economies, but have been flat in most CIS countries; and (ii) 1996 actual dollar wages remain below estimated equilibrium dollar wages for most but not all transition countries covered.
Series:
Working Paper No. 1997/149
Subject:
Competition Financial markets Foreign exchange Human capital Labor Production Productivity Real exchange rates Wages
Notes:
Also published in Staff Papers, Vol. 45, No. 2, June 1998.
English
Publication Date:
November 1, 1997
ISBN/ISSN:
9781451923551/1018-5941
Stock No:
WPIEA1491997
Pages:
55
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