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Does Economic Integration Affect the Structure of Industries? Empirical Evidence from the CEE

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  • D'artis Kancs

Abstract

In this paper we study the impacts of regional integration on the structure of industries in the Central and Eastern European (CEE) transition economies. Our empirical analysis is based on the economic geography framework, which is able to predict not only the industry location after integration, but also to capture other general equilibrium effects, such as transition to market economy, which turn out to be highly significant in the CEE. Our empirical results complement previous findings that industry location is strongly related to economic integration. We also find that CEE integration of the Council on Mutual Economic Assistance (CMEA) has distorted the industry location pattern predicted by the underlying economic geography theory. These distortions are higher in those regions that were more integrated in the CMEA. Our ex-ante simulation results suggest a convergence in regional specialisation after CEE integration with the EU.

Suggested Citation

  • D'artis Kancs, 2007. "Does Economic Integration Affect the Structure of Industries? Empirical Evidence from the CEE," Economic Systems Research, Taylor & Francis Journals, vol. 19(1), pages 73-97.
    • Handle: RePEc:taf:ecsysr:v:19:y:2007:i:1:p:73-97
    DOI: 10.1080/09535310601164807
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    Citations

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    Cited by:

    1. Klaus S. Friesenbichler & Michael Böheim & Michael Peneder, 2019. "Die Effekte der EU-Osterweiterung in den Beitrittsländern. Evidenz auf Länder- und auf Unternehmensebene," WIFO Monatsberichte (monthly reports), WIFO, vol. 92(12), pages 907-918, December.
    2. N. N., 2019. "WIFO-Monatsberichte, Heft 12/2019," WIFO Monatsberichte (monthly reports), WIFO, vol. 92(12), December.
    3. Klaus S. Friesenbichler, 2020. "Does EU-accession affect domestic market structures and firm level productivity?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(2), pages 343-364, May.
    4. Fan, Xiao-mei & Liu, Hong-guang, 2021. "Global supply chain shifting: A macro sense of production relocation based on multi-regional input-output table," Economic Modelling, Elsevier, vol. 94(C), pages 672-680.
    5. James Anderson, 2001. "Migration, FDI, and the Margins of Trade," EERI Research Paper Series EERI_RP_2001_05, Economics and Econometrics Research Institute (EERI), Brussels.
    6. repec:lic:licosd:19407 is not listed on IDEAS
    7. Curran, Louise & Zignago, Soledad, 2012. "EU enlargement and the evolution of European production networks," Research in International Business and Finance, Elsevier, vol. 26(2), pages 240-257.
    8. Kancs, d'Artis & Kielyte, Julda, 2010. "European Integration and Labour Migration," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 14, November.

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