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Dimensions of quality upgrading

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Author Info
Uwe Dulleck
Neil Foster
Robert Stehrer
Julia Woerz

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Abstract

The impact of the Central and Eastern European (CEE) economies' trade integration with European markets on CEE trade structures has been studied extensively. These studies frequently observe a quality upgrading of CEE exports. In this paper we consider three dimensions of quality upgrading: upgrading across industries, upgrading across different quality segments within industries and, finally, product upgrading within quality segments inside industries. For the analysis we partition industries into quality segments based on EU-15 import unit values. The results for ten CEE countries (comprising the CEE-5, the Baltics and South East Europe) and thirteen industries suggest fundamental differences, both across country groups and across the three different notions of quality upgrading. The CEE-5 show no evidence of entering a 'low-quality trap' in all three dimensions. By contrast, while there is a general catching-up process across industries and inside quality segments, the second notion of low-quality specialization may be applicable within the high-tech industries to the performance for the Baltics and South East Europe as a group. Copyright (c) The European Bank for Reconstruction and Development, 2005.

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Publisher Info
Article provided by The European Bank for Reconstruction and Development in its journal The Economics of Transition.

Volume (Year): 13 (2005)
Issue (Month): 1 (01)
Pages: 51-76
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Handle: RePEc:bla:etrans:v:13:y:2005:i:1:p:51-76

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  1. Joze P. Damijan & Matija Rojec & Maja Ferjancic, 2008. "Growing export performance of transition economies: EU market access versus supply capacity factors," LICOS Discussion Papers 20208, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  2. Eleonora Cavallaro & Marcella Mulino, 2008. "Vertical Innovation and Catching-Up: Implications of EU Integration for CEECs-5," International Advances in Economic Research, Springer, vol. 14(3), pages 265-279, August. [Downloadable!] (restricted)
  3. Ashoka Mody & Deniz Igan & Stefania Fabrizio, 2007. "The Dynamics of Product Quality and International Competitiveness," IMF Working Papers 07/97, International Monetary Fund. [Downloadable!]
  4. Égert, Balázs & Lommatzsch, Kirsten, 2004. "Equilibrium exchange rates in the transition: The tradable price-based real appreciation and estimation uncertainty," BOFIT Discussion Papers 9/2004, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
    Other versions:
  5. Imre Ferto, 2007. "The Dynamics of Trade in Central and Eastern European Countries," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 5(1), pages 5-23. [Downloadable!]
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This page was last updated on 2009-11-28.

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