IMF Working Papers

Armenia: An Assessment of the Real Exchange Rate and Competitiveness

By Anke Weber, Chunfang Yang

January 1, 2011

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Anke Weber, and Chunfang Yang. Armenia: An Assessment of the Real Exchange Rate and Competitiveness, (USA: International Monetary Fund, 2011) accessed November 21, 2024
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.

Subject: Balance of payments, Competition, Current account, Exchange rates, Financial markets, Foreign exchange, Real effective exchange rates, Real exchange rates

Keywords: CA norm, CCE estimation methodology, Competition, Competitiveness, Current account, Equilibrium exchange rate, Estimation result, Exchange rate, Exchange rate appreciation, Exchange rate misalignment, Exchange rates, Global, Panel estimation, Panel estimations, Price index, Real effective exchange rates, Real exchange rates, WP

Publication Details

  • Pages:

    39

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2011/020

  • Stock No:

    WPIEA2011020

  • ISBN:

    9781455211951

  • ISSN:

    1018-5941

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