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Neighbours in Transition

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  • Peneder, Michael
  • Stehrer, Robert

Abstract

The breakdown of the communist regime in Eastern Europe marked a historical event for countries on both sides of the iron curtain. Applying the recently released EU KLEMS database on sectoral growth and productivity measures, we study the period after the transformational recession 1995-2004 for Austria, Czech Republic, Hungary, Slovak Republic, and Slovenia and compare the performance to a group of European core economies. Our analysis reveals pronounced differences in performance but also striking similarities in terms of industrial structure. Beginning witha brief account of aggregate growth and its components, the focus is then on specialisation patterns and the varying contribution of industries characterised by educational intensity. Fianlly, we investigate the manufacturing sector in more detail, demonstrating that the Eastern European countries sucessfully specialised in higher-tech sectors which might be explained by high productivity growth rates in these sectors.

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  • Peneder, Michael & Stehrer, Robert, 2007. "Neighbours in Transition," National Institute Economic Review, National Institute of Economic and Social Research, vol. 200, pages 96-104, April.
    • Handle: RePEc:cup:nierev:v:200:y:2007:i::p:96-104_12
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    Cited by:

    1. Palmero, Alfredo Jiménez & Herrera, Juan José Durán & Sabaté, Juan Manuel de la Fuente, 2013. "The role of psychic distance stimuli on the East-West FDI location structure in the EU. Evidence from Spanish MNEs," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(1), pages 36-65.
    2. Tomáš Volek & Martina Novotná, 2015. "Gross Value Added and Total Factor Productivity In Czech Sectors," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 9(1), March.

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