Armenia : An Assessment of the Real Exchange Rate and Competitiveness

Author/Editor:

Anke Weber ; Chunfang Yang

Publication Date:

January 1, 2011

Electronic Access:

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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 uses a range of different methodologies to estimate the equilibrium real exchange rate in Armenia with both single-country and panel estimation techniques. We estimate a country specific autoregressive distributed lag model and then proceed with the estimation of a cointegrated panel consisting of transition economies in Europe and Central Asia. This addresses cross section dependence by using common correlated effects estimators. While our analysis focuses on Armenia, the methods are applicable to a large number of transition economies, and the paper thus provides an overview of methods that can be used to assess a country’s equilibrium exchange rate.

Series:

Working Paper No. 11/20

Subject:

English

Publication Date:

January 1, 2011

ISBN/ISSN:

9781455211951/1018-5941

Stock No:

WPIEA2011020

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

39

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