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accession countries Balassa Balassa-Samuelson effect Belarus bold are significant central and eastern Czech Republic displays the p-value Eastern Europe Eastern Europe Countries Economic Outlook database effective exchange rate Error correction coefficient Estimates for Eastern Estonia Europe Countries included exchange rate appreciations exchange rate gap exchange rate movements external real exchange five percent significance fixed effect estimation former Soviet Union Government balance Halpern and Wyplosz Hausman test X*(2)-distributed included in regression Industry productivity industry sector relative International Monetary Fund Joint Hausman test Latvia Log(productivity in industry Log(Real effective exchange Long run coefficient Mean Group Estimates non-transition countries nontradable sector Numbers in bold OECD countries percent significance level Pooled Mean Group productivity variable purchasing power parity Real eff Real Effective Exchange real exchange rate relative to OECD run coefficient t-statistic Slovenia Soviet Union T-values in parenthesis terms of trade tradables productivity tradables sector transition countries transition economies Turkmenistan U.S. dollar World Economic Outlook