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Does Product Differentiation Explain the Increase in Exports of Transition Countries?

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  • Yener Kandogan

Abstract

This paper analyzes the increase in transition countries' exports to their nontraditional trade partners. It uses four different measures of product differentiation to determine the extent to which dynamics in product variety explain this phenomenon. It is found that opening up to new trade partners, at first, increases the number of sectors in which trade occurs. This is followed by a brief period of specialization in selected sectors, and finally, an increase in the number of varieties of products in these sectors. It is also found that the increase in product variety in Central and East European country (CEEC) exports has been much more substantial than it has been in the Commonwealth of Independent States (CIS), consistent with a much larger reorientation of CEEC trade with nontraditional partners.

Suggested Citation

  • Yener Kandogan, 2006. "Does Product Differentiation Explain the Increase in Exports of Transition Countries?," Eastern European Economics, Taylor & Francis Journals, vol. 44(2), pages 6-22, March.
    • Handle: RePEc:mes:eaeuec:v:44:y:2006:i:2:p:6-22
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    1. repec:lic:licosd:20908 is not listed on IDEAS
    2. Imre Ferto & Károly Attila Soos, 2008. "Duration of trade of former communist countries at the EU," CERS-IE WORKING PAPERS 0816, Institute of Economics, Centre for Economic and Regional Studies.
    3. Imre Fertő & Karoly Attila Soos, 2009. "Duration of trade of former communist countries in the EU market," Post-Communist Economies, Taylor & Francis Journals, vol. 21(1), pages 31-39.
    4. Veerle Miranda & Marialuz Moreno Badia & Ilke Van Beveren, 2012. "Globalization drives strategic product switching," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(1), pages 45-72, April.
    5. Nikola Najman & Petr Rozmahel & Ludek Kouba & Ladislava Grochová, 2013. "Integration of Central and Eastern European Countries: Increasing EU Heterogeneity? WWWforEurope Working Paper No. 9," WIFO Studies, WIFO, number 46856.

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