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Determinants of Trade Specialization in the New EU Member States

Author

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  • Dora Borbély

    (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))

Abstract

European integration brings about major impulses for structural change in industry within the enlarged European Union. Underlying paper aims at explaining trade specialization patterns of the new EU member states as suppliers on the EU 15 market. The analysis is based on the key shifts in sectoral developments as shown via changing RCA indicators of relative export shares to the EU15. A dynamic panel analysis displays that the most important factors driving comparative advantages in trade are industrial production, export unit values, FDI, R&D, and low relative wages as compared to the EU 15 countries. The impact of these variables varies considerably when dealing either with total manufacturing, with labour intensive or with high-tech industries.

Suggested Citation

  • Dora Borbély, 2005. "Determinants of Trade Specialization in the New EU Member States," EIIW Discussion paper disbei138, Universitätsbibliothek Wuppertal, University Library.
    • Handle: RePEc:bwu:eiiwdp:disbei138
    as

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    File URL: https://eiiw.wiwi.uni-wuppertal.de/fileadmin/eiiw/Daten/Publikationen/Gelbe_Reihe/disbei_138.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    trade specialization; comparative advantage; dynamic panel analysis;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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