Publication detail

What Drives the Non-price Competitiveness of the EU New Member States

Author(s): PhDr. Jaromír Baxa Ph.D., Ondřej Sláma
† prof. Ing. Michal Mejstřík CSc., Ondřej Sláma
Mgr. Eva Michalíková , Ondřej Sláma
Type: Article in collection
Year: 2018
Number: 0
Published in: Proceedings of int. conference ICPEMS
Publishing place: Athens
Keywords: Competitiveness, non-price competitiveness, real exchange rates, export market shares, Bayesian model averaging
JEL codes: C32, E52, F41
Suggested Citation:
Grants: GACR 402/16-02392S Competitiveness and Exchange Rate: Institutions and Innovations
Abstract: Before the Great Recession, the growth of the EU New Member States was driven by gains in non-price competitiveness. It allowed for significant appreciation of their real exchange rates and for increasing export market shares at the same time. This paper discusses the post-crisis developments in non-price competitiveness of these countries. We show that the pre-crisis growth of non-price competitiveness has decreased substantially, and it has halted or even has fallen into negative territory in some countries. Therefore, the developments of the non-price competitiveness resembles the dynamics of the overall economic growth of the EU New Member States and their convergence towards the core of the EU, notably to Germany. Furthermore, we study the determinants of non-price competitiveness by using Bayesian model averaging and we assess the relative contribution of non-price competitiveness to the dynamics of exports of the EU New Member States.
Downloadable: presentation for Athens 2018




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