Purchasing power parities for GDP: comparative price levels and per capita volume indices

2021 ◽  
Vol 2021 (8) ◽  
Keyword(s):  
Purchasing Power ◽  
Price Levels ◽  
Per Capita ◽  
Purchasing Power Parities

scholarly journals Comparative Price Levels of New EU Member Countries

2014 ◽  
Vol 39 (1) ◽  
pp. 9-17 ◽  
Author(s):  
Josef Taušer ◽  
Pavel Žamberský ◽  
Radek Čajka
Keyword(s):  
Organizational Structures ◽  
Gdp Per Capita ◽  
Purchasing Power ◽  
Business Skills ◽  
South East Europe ◽  
Price Levels ◽  
International Distribution ◽  
Per Capita ◽  
Main Determinants ◽  
Purchasing Power Parities

Abstract This article analyzes comparative price levels of 10 new EU member countries from Central, East, and South-East Europe and discusses their main determinants. A comparison of comparative price levels is logically followed by a comparison of relative GDP per capita in purchasing power parities. Further, the Balassa-Samuelson efect is theoretically explained and empirically tested using a sample of EU27 countries (excluding Luxemburg). The results of simple regression analysis confrm that diferences in comparative price levels can be explained by the diferences in relative GDP per capita in purchasing power parities. Besides the Balassa-Samuelson efect there are, however, many other factors that have an impact on comparative price levels. Tey are related to the lower competitiveness of domestic companies on international markets as the result of such factors as a lower quality of production, inefcient organizational structures and management styles, insufcient marketing and business skills, or a poor approach to international distribution channels.

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