| Abstract [eng] |
Balassa- Samuelson effect’ in EU. 66 pages, 14 charts, 6 tables, 22 formulas, 48 references. The main purpose of this master thesis is to evaluate the Balassa-Samuelson effect in European Union. The thesis is composed of three main parts each of them dealing with different aspects of Balassa-Samuelson effect. Literature analysis describes the concept of Balassa-Samuelson effect, explains main assumptions of this effect, clarifies the importance of Balassa-Samuelson effect to monetary policy and monetary unions, focuses on different methods to estimate the Balassa-Samuelson effect and points out the caveats of this effect as well as reviews the degree of investigation of the Balassa-Samuelson effect in Europe. After the literature analysis the author has defined the methodology to evalutate the Balassa-Samuelson effect in European Union. The Balassa-Samuelson effect was evaluated in eleven countries of European Union which GDP per capita were lower than euro area (19 countries) BDP per capita and which are members of euro area i. e. Estonia, Greece, Spain, Italy, Cyprus, Latvia, Lithuania, Malta, Portugal, Slovenia and Slovakia. It is worth mentioning that the evaluation of Balassa-Samuelson effect was made for each country individually not as a part of panel data. Furthermore, two different types of inflation were used: common inflation indicator and inflation excluding energy indicator in order to distinguish the influence of energy price. The results analysis of evaluated Balassa-Samuelson effect examines the existence of the assumptions of the Balassa-Samuelson effect in Spain, Italy, Lithuania and Slovakia as well as evaluates the Balassa-Samuelson effect in European Union using two different types of inflation: common inflation indicator and inflation excluding energy indicator. The conclusions summarise the main concept of literature analysis and the results of the performed research. Results of data analysed show that Balassa Samuelson effect using common inflation indicator exists in Italy, Latvia, Lithuania, Malta and Slovakia. The effect in these countries ranges from 0,18 per cent in Italy to 1,08 per cent in Lithuania. On the other hand, Balassa-Samuelson effect using inflation excluding energy indicator exists in Greece, Cyprus, Lithuania, Malta, Slovenia and Slovakia. The effect in these countries ranges from 0,01 per cent in Greece to 0,66 per cent in Lithuania. |
