Working Papers

The workbook analyzes the responsiveness of Slovenian exports to foreign demand and the real effective exchange rate. The Slovenian economy is traditionally very open, as the share of exports in relation to GDP averaged 75.7% of GDP in the period 2010–2018. Due to this openness, the performance of the economy is largely determined by external conditions. The author first presents Slovenia’s export flows and cost competitiveness. The central part of the workbook is the analysis of the responsiveness of exports of goods with vector autoregression and the error correction mechanism. The analysis covers the period from the first quarter of 2001 to the second quarter of 2019 (2001q1–2019q2). The starting point of the analysis is the year 2001, when Slovenia achieved external balance, expressed by the current account of the balance of payments and the net international investment position. The observation period also includes the period of the liberalization of capital flows, the years of high economic growth in Slovenia (2004–2008), the crisis period and the period of the recovery of the Slovenian economy.