This paper explores the relationship between macroeconomic
regimes and the intensity of change in cost structures in Central and Eastern
Europe (CEE). Change in the cost structure may be considered as a structural
factor, with a potential to strongly affect macroeconomic policy and vice
versa. Macroeconomic policies should take into account the intensity of change
in cost structures and its effects on the tightness of the macroeconomic
regime. Similar macroeconomic polices have different sectoral (industry) and
overall growth effects. A successful macroeconomic policy handles both the
underlying industry structure and the intensity of changes in costs. An
analysis of the relationship between industry cost structures and macroeconomic
regimes in five CEE countries shows that i) cost structures are more homogenous
within industries than within countries; ii) changes in cost structures are
dominantly intra-industry, i.e. unrelated to changes in industry structures,
though in some countries structural and specialisation effects were also found
to be significant. Linking the intensity of changes in industry cost structures
with a composite measure of macroeconomic stability, the paper identifies a
country-specific relationship between changes in costs and macroeconomic
stability. Based on these findings, arguments are provided for the integration
of macroeconomic and industrial (technology) policies.
Chankong, V. - Haimes, Y. Y. (1983): Multiobjective Decision Making - Theory and Methodology. Amsterdam: Elsevier Science Publishing Co.
Multiobjective Decision Making - Theory and Methodology, ().
Multiobjective Decision Making - Theory and Methodology)| false
Hotopp, U. - Radosevic, S. - Bishop, K. (2005): Trade and Industrial Upgrading in Countries of Central and Eastern Europe: Patterns of Scale- and Scope-based Learning. Emerging Market Review, July/August, (6)3: 35-90.
'Trade and Industrial Upgrading in Countries of Central and Eastern Europe: Patterns of Scale- and Scope-based Learning' () 3Emerging Market Review: 35-90.
Trade and Industrial Upgrading in Countries of Central and Eastern Europe: Patterns of Scale- and Scope-based LearningEmerging Market Review33590)| false