IDEAS home Printed from https://ideas.repec.org/a/prs/ecoprv/ecop_0249-4744_2002_num_152_1_6365.html
   My bibliography  Save this article

Transition, variété des produits et intégration économique

Author

Listed:
  • Tito Boeri
  • Joaquim Oliveira-Martins

Abstract

[eng] Convergence of transition countries will have an impact on their external competitiveness. However, small open economies can grow faster than their partners without being constrained by the balance of payments if they succeed in increasing the supply of differentiated goods produced domestically (variety effect). This will require extensive economic restructuring as production is still largely focused on homogeneous goods with little differentiation and business density is significantly lower than in Western Europe. This paper introduces a simple open-economy model that can account for these stylised facts of transition and provides numerical simulations to evaluate the potential impact of the economic restructuring process on employment, production and start-up costs for new businesses. [fre] Convergence of transition countries will have an impact on their external competitiveness. However, small open economies can grow faster than their partners without being constrained by the balance of payments if they succeed in increasing the supply of differentiated goods produced domestically (variety effect). This will require extensive economic restructuring as production is still largely focused on homogeneous goods with little differentiation and business density is significantly lower than in Western Europe. This paper introduces a simple open-economy model that can account for these stylised facts of transition and provides numerical simulations to evaluate the potential impact of the economic restructuring process on employment, production and start-up costs for new businesses.

Suggested Citation

  • Tito Boeri & Joaquim Oliveira-Martins, 2002. "Transition, variété des produits et intégration économique," Économie et Prévision, Programme National Persée, vol. 152(1), pages 55-69.
    • Handle: RePEc:prs:ecoprv:ecop_0249-4744_2002_num_152_1_6365
    DOI: 10.3406/ecop.2002.6365
    Note: DOI:10.3406/ecop.2002.6365
    as

    Download full text from publisher

    File URL: https://doi.org/10.3406/ecop.2002.6365
    Download Restriction: no
    File URL: https://www.persee.fr/doc/ecop_0249-4744_2002_num_152_1_6365
    Download Restriction: no
    File URL: https://libkey.io/10.3406/ecop.2002.6365?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert C. Feenstra & Tzu-Han Yang & Gary G. Hamilton, "undated". "Business Groups And Trade In East Asia: Part 2, Product Variety," Department of Economics 96-14, California Davis - Department of Economics.
    2. Gérard Roland & Thierry Verdier, 1999. "Transition and the output fall," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 1-28, March.
    3. Robert C. Feenstra & Deng-Shing Huang & Gary G. Hamilton, 1997. "Business Groups and Trade in East Asia: Part 1, Networked Equilibria," NBER Working Papers 5886, National Bureau of Economic Research, Inc.
    4. A. Richter & M.E. Schaffer, 1996. "The Performance of De Novo Private Firms in Russian Manufacturing," CERT Discussion Papers 9610, Centre for Economic Reform and Transformation, Heriot Watt University.
    5. Hélène Erkel-Rousse, 1997. "Endogenous Differentiation Strategies, Comparative Advantage and the Volume of Trade," Annals of Economics and Statistics, GENES, issue 47, pages 121-149.
    6. Daniel Daianu, 1996. "Stabilization and exchange rate policy in Romania," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 229-248, May.
    7. Krugman, Paul, 1989. "Differences in income elasticities and trends in real exchange rates," European Economic Review, Elsevier, vol. 33(5), pages 1031-1046, May.
    8. Hoekman, Bernard & Djankov, Simeon, 1996. "Intra-industry trade, foreign direct investment, and the reorientation of Eastern European exports," Policy Research Working Paper Series 1652, The World Bank.
    9. Neven, Damien, 1995. "Trade liberalisation with Eastern nations: Some distribution issues," European Economic Review, Elsevier, vol. 39(3-4), pages 622-632, April.
    10. Djankov, Simeon & Hoekman, Bernard, 1996. "Intra-Industry Trade, Foreign Direct Investment and the Reorientation of East European Exports," CEPR Discussion Papers 1377, C.E.P.R. Discussion Papers.
    11. repec:adr:anecst:y:1997:i:47:p:07 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tito Boeri & Joaquim Oliveira Martins, 2002. "Varieties, Jobs and EU Enlargement," Rivista di Politica Economica, SIPI Spa, vol. 92(1), pages 139-178, January-F.
    2. Stoyan Totev & Grigor Sariiski, 2009. "Delocalisation Process and Changes of Competitive Advantages – A Survey of Enterprises," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 46-57.
    3. J. Caetano & A. Galego & E. Vaz & C. Vieira & I. Vieira, 2002. "The Eastward Enlargement of the Eurozone: Trade and FDI," Eastward Enlargement of the Euro-zone Working Papers wp07, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Aug 2002.
    4. Luka, Oksana & Levkovych, Inna, 2004. "Intra-industry trade in agricultural and food products: the case of Ukraine," IAMO Discussion Papers 78, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    5. repec:cnb:ocpubv:as16 is not listed on IDEAS
    6. Iga Magda & David Marsden & Simone Moriconi, 2012. "Collective Agreements, Wages, and Firms' Cohorts: Evidence from Central Europe," ILR Review, Cornell University, ILR School, vol. 65(3), pages 607-629, July.
    7. Lorena Skufliæ, 2005. "The integration process as a determinant of intra-industry trade," ERSA conference papers ersa05p715, European Regional Science Association.
    8. Gerhard Palme, 1998. "Auswirkungen der EU-Osterweiterung auf die österreichische Sachgüterproduktion. Ostöffnungseffekte beleben österreichische Industrie," WIFO Monatsberichte (monthly reports), WIFO, vol. 71(11), pages 761-769, November.
    9. Y. Kandogan, 2003. "Reconsidering the adjustment costs of the Europe agreements," Applied Economics Letters, Taylor & Francis Journals, vol. 10(2), pages 63-68.
    10. Michaël Freudenberg & Françoise Lemoine, 1999. "Central and Eastern European Countries in the International Division of Labour in Europe," Working Papers 1999-05, CEPII research center.
    11. Eichengreen, Barry & Kohl, Richard, 1998. "The External Sector, the State and Development in Eastern Europe," CEPR Discussion Papers 1904, C.E.P.R. Discussion Papers.
    12. repec:cnb:ocpubv:as15 is not listed on IDEAS
    13. Yener Kandogan, 2003. "The Reorientation of Transition Countries??? Exports: Changes in Quantity, Quality and Variety," William Davidson Institute Working Papers Series 2003-631, William Davidson Institute at the University of Michigan.
    14. repec:cnb:ocpubv:as12 is not listed on IDEAS
    15. Kaitila, Ville & WidgrÉn, Mika, 1999. "Revealed Comparative Advantage in Trade between the European Union and the Baltic States," Discussion Papers 697, The Research Institute of the Finnish Economy.
    16. Feenstra, Robert C. & Madani, Dorsati & Yang, Tzu-Han & Liang, Chi-Yuan, 1999. "Testing endogenous growth in South Korea and Taiwan," Journal of Development Economics, Elsevier, vol. 60(2), pages 317-341, December.
    17. repec:cnb:ocpubv:as08 is not listed on IDEAS
    18. Marques, Helena, 2002. "Trade Similarities between Eastern and Southern Europe: Opportunities or Competition?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 3(2), pages 1-20.
    19. repec:lic:licosd:33413 is not listed on IDEAS
    20. repec:cnb:ocpubv:as13 is not listed on IDEAS
    21. repec:cnb:ocpubv:as14 is not listed on IDEAS
    22. Gabrisch, Hubert, 2006. "Vertical Intra-industry Trade between EU and Accession Countries," IWH Discussion Papers 12/2006, Halle Institute for Economic Research (IWH).
    23. Yener Kandogan, 1999. "Lingering effects of central planning on trade? Evidence from current CIS trade patterns," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(3), pages 501-521, September.
    24. Klodt, Henning & Maurer, Rainer, 1996. "Internationale Direktinvestitionen: Determinanten und Konsequenzen für den Standort Deutschland," Kiel Discussion Papers 284, Kiel Institute for the World Economy (IfW Kiel).
    25. Miklos Szanyi, 2002. "Spillover effects and business linkages of foreign-owned firms in Hungary," IWE Working Papers 126, Institute for World Economics - Centre for Economic and Regional Studies.
    26. Kaminski, Bartlomiej, 2001. "How accession to the European Union has affected external trade and foreign direct investment in Central European economies," Policy Research Working Paper Series 2578, The World Bank.
    27. Kaminski, Bartlomiej & Ng, Francis, 2001. "Trade and production fragmentation : Central European economies in European Union networks of production and marketing," Policy Research Working Paper Series 2611, The World Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prs:ecoprv:ecop_0249-4744_2002_num_152_1_6365. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Equipe PERSEE (email available below). General contact details of provider: https://www.persee.fr/collection/ecop .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.