Assessing Eastern Europe's Capital Needs

Author/Editor:

Anthony R. Boote

Publication Date:

February 1, 1992

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:

The paper aims at assessing the capital needs of Eastern Europe in catching up to EC standards of living using the framework of a CES (constant elasticity of substitution) production function model. This function, parameterized on the EC, is assumed to apply with certain inefficiency factors in Eastern Europe in 1992. Quantitative results, given the heroic set of assumptions required, are bounded by large ranges. The approach provides a framework for assessing the factors which will determine the future capital needs in Eastern Europe and underscores the crucial role of efficiency gains in this process.

Series:

Working Paper No. 1992/012

Subject:

Exchange rates Financial institutions Foreign exchange Income Labor National accounts Purchasing power parity Stocks

Notes:

Also published in Staff Papers, Vol. 39, No. 4, December 1992.

English

Publication Date:

February 1, 1992

ISBN/ISSN:

9781451842821/1018-5941

Stock No:

WPIEA0121992

Pages:

24

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