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Trade Similarities between Eastern and Southern Europe: Opportunities or Competition?

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  • Marques, Helena

Abstract

Using only transition period data, this paper analyses revealed comparative advantages (RCAs) and specialisations to identify the 3-digit SITC (Standard International Trade Classification) sectors in which the EUÂ’s trade liberalisation with Eastern European applicants may represent opportunities or competition between them and EU South. First, during the transition period potential competition occurs in labour-intensive sectors. Over one-third of Eastern European and EU South exports overlap both in the labour-intensive factor content and in the destination market (EU North). Second, the clothing and footwear export unit values of Visegrad countries are very close to those of EU South, indicating similar quality levels. Third, the greatest potential opportunities for Eastern Europe lie in R&D-intensive sectors. Finally, the benefits for EU South of trade liberalisation with Eastern Europe, if any, lie in obtaining cheaper imports rather than in exporting to the Eastern European market.

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Bibliographic Info

Article provided by Estey Centre for Law and Economics in International Trade in its journal Estey Centre Journal of International Law and Trade Policy.

Volume (Year): 03 (2002)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:ags:ecjilt:23918

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Related research

Keywords: Eastern Europe; EU enlargement; Southern Europe; trade; transition; International Relations/Trade;

References

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  1. Black,Stanley W., 1997. "Europe's Economy Looks East," Cambridge Books, Cambridge University Press, number 9780521572422, October.
  2. Baldwin, Richard E., 1995. "The Eastern enlargement of the European Union," European Economic Review, Elsevier, vol. 39(3-4), pages 474-481, April.
  3. Neven, Damien, 1995. "Trade liberalisation with Eastern nations: Some distribution issues," European Economic Review, Elsevier, vol. 39(3-4), pages 622-632, April.
  4. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 142, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  5. David Greenaway & Robert Hine & Chris Milner, 1994. "Country-specific factors and the pattern of horizontal and vertical intra-industry trade in the UK," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(1), pages 77-100, March.
  6. Richard E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR & CES & MSH, vol. 12(24), pages 125-176, 04.
  7. Marius Brülhart & Mary Kelly, 1998. "Ireland's Trading Potential with Central and Eastern European Countries: A Gravity Study," Economics Technical Papers 9815, Trinity College Dublin, Department of Economics.
  8. Balassa, Bela, 1977. "'Revealed' Comparative Advantage Revisited: An Analysis of Relative Export Shares of the Industrial Countries, 1953-1971," The Manchester School of Economic & Social Studies, University of Manchester, vol. 45(4), pages 327-44, December.
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Cited by:
  1. Oelgemöller, Jens & Westermeier, Andreas, 2009. "RCAs within Western Europe," Center for European, Governance and Economic Development Research Discussion Papers 79, University of Goettingen, Department of Economics.
  2. Oelgemöller, Jens & Westermeier, Andreas, 2009. "RCAs within Western Europe," CAWM Discussion Papers 11, Center of Applied Economic Research Münster (CAWM), University of Münster.
  3. Oelgemöller, Jens & Westermeier, Andreas, 2009. "RCAs within Western Europe," Center for European, Governance and Economic Development Research Discussion Papers 79, University of Goettingen, Department of Economics.

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