Front Matter Page
© 2009 International Monetary Fund
March 2009
IMF Country Report No. 09/85
Republic of Estonia: Selected Issues
This Selected Issues paper for the Republic of Estonia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on February 17, 2009. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of the Republic of Estonia or the Executive Board of the IMF.
The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.
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Front Matter Page
INTERNATIONAL MONETARY FUND
REPUBLIC OF ESTONIA
Selected Issues
Prepared by Nada Choueiri (EUR), Marialuz Moreno Badia (EUR), and Pedro Rodriguez (SPR)
Approved by the European Department
February 17, 2009
Contents
I. Financing Constraints and Productivity in Estonia
A. Introduction
B. Data
C. Are There Signs of Financing Constraints?
D. Have Financing Constraints Reduced Firm-Level TFP?
E. Conclusions
Tables
1. Summary Statistics
2. Determinants of Financing Constraints
3. Magnitude and Distribution of Financing Constraints by Sector
4. Results for the Structural Approach, by Industry
Figures
1. Contribution to Private Sector Credit Growth, 2000:Q4–2008:Q1
2. Contributions to Corporate Credit Growth by Industry
3. Labor Productivity
4. Mean Financing Constraints by Industry, 1998–2005
Appendix I
Data Sources and Definitions
Appendix Table
A1. Industry Classification
References
II. Assessment of Current Account Stability
Overview and Key Conclusions
Equilibrium and Underlying Current Account Measures
Direct Estimates of the Misalignment of the Real Exchange Rate
Assessment of the Results
Conclusions
Tables
1. Equilibrium Medium-Term Current Account Balance, Macrobalance Approach
2. Deriving the Underlying Current Account Balance Under the Elasticities-Based Method
3. Current Account Stability. Summary Table
4. Equilibrium Real Exchange Rate Approach
Figures
1. Forecasting the Current Account Deficit Using the Elasticities Method
2. Actual and Estimated Current Account Deficit
References
III. Balance-Sheet Analysis
Table
1. Intersectoral Asset and Liability Positions, September 2008
References