Armenia : An Assessment of the Real Exchange Rate and Competitiveness

Author/Editor: Anke Weber ; Chunfang Yang
Publication Date: January 01, 2011
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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(s): Economic models | Exchange rate assessments | Export prices | Global competitiveness | Real effective exchange rates

Author's Keyword(s): Equilibrium exchange rate | competitiveness | panel estimations
Publication Date: January 01, 2011
ISBN/ISSN: 9781455211951/1018-5941 Format: Paper
Stock No: WPIEA2011020 Pages: 39
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