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Trade, Economic Structure and the Great Recession: The Example of Central, Eastern and Southeastern Europe

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Abstract

As measured by the most recent monthly data, the trade collapse that had started in late 2008 has shifted into a rapid recovery phase. The simplest explanation that fits the facts is that trade has followed the sectoral composition of the recession. The recession has caused particularly strong declines of trade flows in heavy manufacturing, i.e. machinery, vehicles and related raw materials. This has translated into a deep manufacturing recession and an even stronger drop in trade. In particular, for CESEE countries these sectors are far more important in the composition of trade than they are in the composition of GDP.

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File URL: http://www.oenb.at/dms/oenb/Publikationen/Volkswirtschaft/Focus-on-European-Economic-Integration/2010/Focus-on-European-Economic-Integration-Q1-10/chapters/feei_2010_q1_studies_woerz_tcm16-186372.pdf
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Article provided by Oesterreichische Nationalbank (Austrian Central Bank) in its journal Focus on European Economic Integration.

Volume (Year): (2010)
Issue (Month): 1 ()
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Handle: RePEc:onb:oenbfi:y:2010:i:1:b:4

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Keywords: trade collapse; industrial structure; Central; Eastern and Southeastern Europe;

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