<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper brings releationship between real effective exchange rate and industry production in Croatia. Research sample consists of monthly data from January 2000 up to June 2019. Following wavelet coherence approach, empirical results reveal the relationship across time and frequency domain. The empirical obtained from wavelet coherence analysis and confirmed with conventional correlation analysis suggested positive relationship between industrial productivity and real effective exchange rate in Croatia, with depreciation as a factor of positive influence on industrial productivity. Research results provided in the paper also contributes to the debate on exchange rate policy in Croatia, extending the discussion on national exchange rate policy implications.</p>
</abstract>

This paper brings releationship between real effective exchange rate and industry production in Croatia. Research sample consists of monthly data from January 2000 up to June 2019. Following wavelet coherence approach, empirical results reveal the relationship across time and frequency domain. The empirical obtained from wavelet coherence analysis and confirmed with conventional correlation analysis suggested positive relationship between industrial productivity and real effective exchange rate in Croatia, with depreciation as a factor of positive influence on industrial productivity. Research results provided in the paper also contributes to the debate on exchange rate policy in Croatia, extending the discussion on national exchange rate policy implications.

Real Effective Exchange Rate and Industrial Productivity in Croatia: Wavelet Coherence Analysis

PhD, Full Professor, Department of Finance, Faculty of Economics and Business Zagreb

PhD, Assistant Professor, Faculty of Economics and Business, Zagreb

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This paper brings releationship between real effective exchange rate and industry production in Croatia. Research sample consists of monthly data from January...

Real Effective Exchange Rate and Industrial Productivity in Croatia: Wavelet Coherence Analysis

Published Online: Jul 12, 2021

Page range: 30 - 37

DOI: https://doi.org/10.2478/jeb-2021-0003

Keywords
real effective exchange rate, industrial productivity, wavelet coherence analysis, Croatia

© 2021 Mile Bošnjak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Real Effective Exchange Rate and Industrial Productivity in Croatia: Wavelet Coherence Analysis

Published Online: Jul 12, 2021

Page range: 30 - 37

DOI: https://doi.org/10.2478/jeb-2021-0003

Keywordsreal effective exchange rate, industrial productivity, wavelet coherence analysis, Croatia

© 2021 Mile Bošnjak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
real effective exchange rate, industrial productivity, wavelet coherence analysis, Croatia