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Does Product Differentiation Explain the Increase in Exports of Transition Countries?

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  • Yener Kandogan
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    Abstract

    This paper analyzes the increase in transition countries' exports to their nontraditional trade partners. It uses four different measures of product differentiation to determine the extent to which dynamics in product variety explain this phenomenon. It is found that opening up to new trade partners, at first, increases the number of sectors in which trade occurs. This is followed by a brief period of specialization in selected sectors, and finally, an increase in the number of varieties of products in these sectors. It is also found that the increase in product variety in Central and East European country (CEEC) exports has been much more substantial than it has been in the Commonwealth of Independent States (CIS), consistent with a much larger reorientation of CEEC trade with nontraditional partners.

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    Bibliographic Info

    Article provided by M.E. Sharpe, Inc. in its journal Eastern European Economics.

    Volume (Year): 44 (2006)
    Issue (Month): 2 (March)
    Pages: 6-22

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    Handle: RePEc:mes:eaeuec:v:44:y:2006:i:2:p:6-22

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    Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106044

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    Cited by:
    1. Veerle Miranda & Marialuz Moreno Badia & Ilke Van Beveren, 2012. "Globalization drives strategic product switching," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 148(1), pages 45-72, April.
    2. Petr Rozmahel & Ludek Kouba & Ladislava Grochová & Nikola Najman, 2013. "Integration of Central and Eastern European Countries: Increasing EU Heterogeneity?," WWWforEurope Working Papers series 9, WWWforEurope.
    3. Marialuz Moreno Badia & Veerle Slootmaekers & Ilke Van Beveren, 2008. "New Dimensions of Adjustment to Globalization," LICOS Discussion Papers 20908, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    4. Imre Fertő & Karoly Attila Soos, 2009. "Duration of trade of former communist countries in the EU market," Post-Communist Economies, Taylor & Francis Journals, vol. 21(1), pages 31-39.

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