REAL EFFECTIVE EXCHANGE RATE AND INDUSTRIAL PRODUCTIVITY IN CROATIA: WAVELET COHERENCE ANALYSIS

Main Article Content

Mile Bošnjak Gordana Kordić Ivan Novak

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.

Article Details

How to Cite
Bošnjak, M., Kordić, G., & Novak, I. (2021). REAL EFFECTIVE EXCHANGE RATE AND INDUSTRIAL PRODUCTIVITY IN CROATIA: WAVELET COHERENCE ANALYSIS. The South East European Journal of Economics and Business, 16(1), 30-37. Retrieved from http://journal.efsa.unsa.ba/index.php/see/article/view/1334
Section
Scientific and Professional papers: Economics and Business
Author Biographies

Mile Bošnjak, Faculty of Economics and Business Zagreb, University of Zagreb

Mile Bošnjak, PhD (corresponding author)
Assistant Professor
Faculty of Economics and Business Zagreb
University of Zagreb
Address: Trg J F. Kennedyja 6, 10 000 Zagreb, Croatia
e-mail: mile.bosnjak76@gmail.com
ORCID: 0000-0002-7663-198X

Gordana Kordić, Faculty of Economics and Business Zagreb, University of Zagreb

Gordana Kordić, PhD
Full Professor
Department of Finance, Faculty of Economics and
Business Zagreb
University of Zagreb
e-mail: gkordic@net.efzg.hr
ORCID: 0000-0002-1914-2784

Ivan Novak, Faculty of Economics and Business Zagreb, University of Zagreb

Ivan Novak, PhD
Assistant Professor
Faculty of Economics and Business Zagreb
University of Zagreb
e-mail: inovak@efzg.hr
ORCID: 0000-0003-1473-7049