The Relationship Between Productivity and Relative Prices in Romania (Balassa-Samuelson Internal Mechanism)

During the catching-up process with the developed European countries, industrial productivity increased with higher rates than in services sector. The aim of the present paper is to test the influence of a growing productivity on relative prices as internal mechanism of Balassa-Samuelson Model. In reaching our purpose we used VEC methodology. Finally, we found a long-run relationship between variables and a weakly connection in the short-run.

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Year of publication:	2011
Authors:	Nicolae, Ghiba
Published in:	Ovidius University Annals, Economic Sciences Series. - Facultatea de Ştiinţe Economice, ISSN 1582-9383. - Vol. XI.2011, 1, p. 819-823
Publisher:	Facultatea de Ştiinţe Economice
Subject:	Balassa-Samuelson internal mechanism \| VEC model \| productivity differential \| relative prices

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Extent:	application/pdf
Type of publication:	Article
Classification:	F31 - Foreign Exchange ; C32 - Time-Series Models ; E31 - Price Level; Inflation; Deflation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010632416