Trade Specialisation and Economic Convergence: Evidence from Two Eastern European Countries
نویسندگان
چکیده
This paper analyses trade specialisation dynamics in two Eastern European countries (Romania and Bulgaria – EEC-2) vis-à-vis the core EU member states (EU-15) over the period 1990-2006. Specifically, we focus on whether there is a shift towards intraindustry trade leading to economic convergence and technological catch-up. We use recently developed static (FEM, REM and FEVD) and dynamic (GMM) panel data methods which take into account possible heterogeneity. Our empirical results indicate that intraindustry trade has indeed increased, but it is of the vertical rather than the horizontal type, resulting in complementary rather than competitive production patterns.
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International Trade and Economic Catch-up
International trade specialisation reflects differences in relative factor productivity and endowments, economies of scale or specific advantages of firms and it can have a significant impact on economic growth. We focus in this paper on trade specialisation dynamics in two Eastern European countries (Romania and Bulgaria – EEC-2) vis-à-vis the EU member states (EU-25). Specifically, we are int...
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