IDEAS home Printed from https://ideas.repec.org/p/wii/rpaper/rr475.html
   My bibliography  Save this paper

Still in the Fast Lane? How can EU-CEE Get its Groove Back?

Author

Listed:
  • Tomáš Slačík

Abstract

This report revisits the growth and convergence performance of the 11 EU member states in Central, East and Southeast Europe (EU-CEE11) over the past few decades, examining the underlying drivers, structural changes and the outlook. The review aims to assess the sustainability of the current economic model and identify areas for economic policy to focus on boosting growth. The findings show that convergence has significantly slowed since the global financial crisis, with value added growth declining in virtually all industries. This slowdown is attributed to structural rather than cyclical factors, with total factor productivity (TFP) being the main driver as well as the primary culprit behind the deceleration. Since medium-term growth projections for the region are not optimistic, the EU-CEE11 countries must make substantial efforts to improve their economic models. Key areas to focus on include energy, underutilised labour and improving human capital. While still very competitive, the manufacturing sector needs to move towards higher value added activities.

Suggested Citation

  • Tomáš Slačík, 2024. "Still in the Fast Lane? How can EU-CEE Get its Groove Back?," wiiw Research Reports 475, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:rpaper:rr:475
    as

    Download full text from publisher

    File URL: https://wiiw.ac.at/still-in-the-fast-lane-how-can-eu-cee-get-its-groove-back-dlp-6997.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stöllinger, Roman, 2021. "Testing the Smile Curve: Functional Specialisation and Value Creation in GVCs," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 93-116.
    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. Ron Boschma, 2024. "An evolutionary approach to regional studies on global value chains," Regional Studies, Taylor & Francis Journals, vol. 58(7), pages 1492-1500, July.
    2. Caliari, Thiago & Ribeiro, Leonardo Costa & Pietrobelli, Carlo & Vezzani, Antonio, 2023. "Global value chains and sectoral innovation systems: An analysis of the aerospace industry," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 36-48.
    3. Dai, Yixin & Zhao, Xiaoying & Yang, Juhua & Chen, Hao, 2024. "How does manufacturing servitization effect global value chain upgrading? Tests based on the dual perspectives of “participation” and “division position”," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 709-723.
    4. Francesca Guadagno & Doris Hanzl-Weiss & Robert Stehrer, 2024. "Where are the Growth Potentials in CESEE? An Illustration of Sectors and Products Using the Product Space," wiiw Research Reports 474, The Vienna Institute for International Economic Studies, wiiw.
    5. Olga Pindyuk & Roman Stöllinger & Zuzana Zavarská, 2022. "Monthly Report No. 11/2022 - FDI in Central, East and Southeast Europe," wiiw Monthly Reports 2022-11, The Vienna Institute for International Economic Studies, wiiw.
    6. Federico Riccio & Lorenzo Cresti & Maria Enrica Virgillito, 2022. "The labour share along global value chains. Perspectives and evidence from sectoral interdependence," LEM Papers Series 2022/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Alexandra Bykova & Richard Grieveson & Doris Hanzl-Weiss & Gabor Hunya & Niko Korpar & Leon Podkaminer & Robert Stehrer & Roman Stöllinger, 2021. "Avoiding a Trap and Embracing the Megatrends: Proposals for a New Growth Model in EU-CEE," wiiw Research Reports 458, The Vienna Institute for International Economic Studies, wiiw.
    8. Bontadini, Filippo & Evangelista, Rinaldo & Meliciani, Valentina & Savona, Maria, 2024. "Technology, global value chains and functional specialisation in Europe," Research Policy, Elsevier, vol. 53(2).
    9. Stöllinger, Roman & Leitner, Sandra M. & Zavarska, Zuzana, 2023. "Functional specialisation and working conditions in Europe," Working Paper Forschungsförderung 284, Hans-Böckler-Stiftung, Düsseldorf.
    10. Andrea Coveri & Antonello Zanfei, 2023. "The virtues and limits of specialization in global value chains: analysis and policy implications," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(1), pages 73-90, March.
    11. Petr Pavlínek, 2023. "Transition of the automotive industry towards electric vehicle production in the east European integrated periphery," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 35-73, February.
    12. Andrea Coveri & Elena Paglialunga & Antonello Zanfei, 2023. "Global value chains, functional diversification and within-country inequality: an empirical assessment," Working Papers 2302, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2023.
    13. Federico Riccio & Giovanni Dosi & Maria Enrica Virgillito, 2023. "Smile without a reason why: functional specialisation and income distribution along global value chains," LEM Papers Series 2023/31, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    14. Lectard, Pauline, 2023. "Manufacturing exports: A virtuous circle of industrialization or a lock-in development pattern? The case of the machinery and textiles sectors," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 319-338.
    15. Dario Guarascio & Jelena Reljic & Giacomo Cucignatto & Giuseppe Celi & Annamaria Simonazzi, 2023. "Between a rock and a hard place. Long-term drivers of EU structural vulnerability," Working Papers in Public Economics 237, University of Rome La Sapienza, Department of Economics and Law.
    16. Roman Stöllinger, 2023. "Von verlängerten Werkbänken und Headquarter-Ökonomien: Die Bedeutung funktionaler Spezialisierung in EU-Wertschöpfungsketten für die Lohnentwicklung," wiiw Policy Notes 70, The Vienna Institute for International Economic Studies, wiiw.

    More about this item

    Keywords

    growth; convergence; growth model; EU-CEE11;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F15 - International Economics - - Trade - - - Economic Integration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wii:rpaper:rr:475. 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: Customer service (email available below). General contact details of provider: https://edirc.repec.org/data/wiiwwat.html .

    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.