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Author:
Ms. Chunfang Yang
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Middle East and Central Asia Department

Authorized for distribution by Mark Horton

Contents

  • I. Introduction

  • II. Recent Developments

    • A. Export Performance

    • B. Price Competitiveness: A Descriptive Analysis

    • C. Non-Price Competitiveness

  • III. Exchange Rate Assessment

    • A. The Macroeconomic Balance Approach

    • B. The External Stability Approach

    • C. The Equilibrium Real Exchange Rate Approach-Single Country Analysis

    • D. The Equilibrium Real Exchange Rate Approach-Panel Estimation

  • IV. Conclusions

  • References

  • Appendix

  • Figures

  • 1. Export Volume

  • 2. Armenia’s Current Account and Non-Commodity Exports

  • 3. Indicators of Armenia’s External Competitiveness

  • 4. Effective Exchange Rate Developments

  • 5. GDP Dynamics and Global Competitiveness Rankings for Armenia

  • 6. World Bank Ease of Doing Business Indicators

  • 7. Results from the MB Approach

  • 8. Results from the ES Approach

  • 9. ARDL Approach, Estimated Equilibrium Real Exchange Rates

  • Tables

  • 1. Export Structure by Products

  • 2. World Economic Forum Competitiveness Indicators

  • 3. Enterprise Survey of Selected Transition Economies

  • 4. Estimated Long Run Coefficients using the ARDL Approach

  • 5. Pesaran’s Cross-Section Dependence Test

  • 6. Panel Estimation Results: Long-run Coefficients

  • 7. Tests for Panel Co-Integration

  • 8. Exchange Rate Misalignment

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Armenia: An Assessment of the Real Exchange Rate and Competitiveness
Author:
Ms. Chunfang Yang