Real Effective Exchange Rates and deindustrialization: Evidence from 25 Post-Communist Eastern European countries

被引:11
作者
Cizmovic, Mirjana [1 ]
Shachmurove, Yochanan [2 ,3 ,4 ]
Vulanovic, Milos [5 ]
机构
[1] Mediterranean Univ, Sch Econ & Business, Podgorica, Montenegro
[2] CUNY City Coll, Dept Econ, New York, NY 10031 USA
[3] CUNY, Grad Program, New York, NY 10021 USA
[4] CUNY, Univ Ctr, New York, NY 10021 USA
[5] EDHEC Business Sch, Dept Data Sci, Roubaix, France
关键词
Global value chain; economic complexity index; Eastern Europe; post-communist economies; real effective exchange rate;
D O I
10.1080/14631377.2020.1867429
中图分类号
F [经济];
学科分类号
02 ;
摘要
For the past three decades, Eastern European countries have exhibited a noticeable decline in their share of the industrial production sector overall, but not uniformly. Simultaneously, trade liberalisation and integration in international production networks were intensified, bringing different export sophistication levels and economic development to countries in this region. This paper aims to examine the real effective exchange rate (REER) impact on the deindustrialisation or reindustrialisation process in 25 post-communist Eastern European countries. The paper employs a heterogeneous panel common factor approach for the period 1995-2018 to exploit the effect of diverse levels of export complexity, stage of economic development and intensity of participation in global value chains on the REER-industrial production relationship. The results establish a heterogeneous yet significant negative relationship between currency strengthening and industrial production. Our findings also indicate that this negative effect of appreciation is less pronounced with the country's higher economic complexity and its broader participation in global value chains.
引用
收藏
页码:863 / 899
页数:37
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