151. Armenia: An Assessment of the Real Exchange Rate and Competitiveness
- Author
-
Anke Weber and Chunfang Yang
- Subjects
Estimation ,Distributed lag ,Armenia ,Foreign exchange ,Equilibrium exchange rate, competitiveness, panel estimations, exchange rate, real exchange rate, cointegration, survey, Open Economy Macroeconomics ,Exchange rate ,Cointegration ,Autoregressive model ,Price index ,Economics ,Econometrics ,General Earth and Planetary Sciences ,Estimator ,Current account ,General Environmental Science - Abstract
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.
- Published
- 2011
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