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The Dynamics of Trade in Central and Eastern European Countries

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Author Info
Imre Ferto (Hungarian Academy of Sciences)

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Abstract

We describe the evolving pattern of Central European countries’ trade using recently developed empirical procedures based around the classic Balassa index. Despite significant changes in Central European economies during transition to a market economy, the distribution of the indices did not change radically over the 1990s. Our results suggest that the trade pattern converged in Czech Republic, Hungary, Poland and Slovenia, while it polarised in Estonia Latvia, Lithuania and Slovakia over the period. For particular product groups, the indices display greater variation. They are stable for product groups with comparative disadvantage, but product groups with weak to strong comparative advantage show significant variation. At the product level different development can be observed in the changes of trade specialization. The comparative advantages are still based largely on primary and natural resource intensive product groups in the Baltic countries, while CEE5 countries show a successful upgrading process in technological and human capital intensive products.

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Publisher Info
Article provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.

Volume (Year): 5 (2007)
Issue (Month): 1 ()
Pages: 5-23
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Handle: RePEc:mgt:youmgt:v:5:y:2007:i:1:p:005-023

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Related research
Keywords: international trade; revealed comparative advantage; Central Europe;

Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F15 - International Economics - - Trade - - - Economic Integration
E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production

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  2. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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    Other versions:
  4. Deardorff, Alan V, 1974. "Factor Proportions and Comparative Advantage in the Long Run: Comment," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 829-33, July/Aug.. [Downloadable!] (restricted)
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  6. Luca DE BENEDICTIS & Massimo TAMBERI, 2002. "A note on the Balassa Index of Revealed Comparative Advantage," Working Papers 158, Universita' Politecnica delle Marche (I), Dipartimento di Economia. [Downloadable!]
  7. Andrea Brasili & Paolo Epifani & Rodolfo Helg, 2000. "On the Dynamics of Trade Patterns," CESPRI Working Papers 115, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Jul 2000. [Downloadable!]
    Other versions:
  8. Uwe Dulleck & Neil Foster & Robert Stehrer & Julia Woerz, 2005. "Dimensions of quality upgrading," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(1), pages 51-76, 01. [Downloadable!] (restricted)
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  15. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-24, September. [Downloadable!] (restricted)
  16. Proudman, James & Redding, Stephen, 2000. "Evolving Patterns of International Trade," Review of International Economics, Blackwell Publishing, vol. 8(3), pages 373-96, August. [Downloadable!] (restricted)
    Other versions:
  17. Redding, Stephen, 1999. "Dynamic Comparative Advantage and the Welfare Effects of Trade," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 15-39, January.
    Other versions:
  18. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
  19. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 265-280, June. [Downloadable!] (restricted)
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