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Trade Possibilities and Structure of Foreign Trade: The Case of Hungary and Poland

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  • Cees van Beers
  • Guido Biessen
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    Abstract

    Reintegration of the Central and East European countries into the world economy factors prominently in the transition process. The success of such a challenge depends on domestic factors as well as the trade policy of the European Community toward the economies in transition. Some criticize the Europe Agreements for not being generous enough in the sensitive sectors. We analyze the export possibilities of Hungary and Poland in 1991 and 1992, taking into account their commodity composition of trade. Using a gravity model extended with a variable for the commodity composition of trade, it is shown that Poland and Hungary have not been able to convert their export possibilities into actual exports to the extent long-standing market economies could. However, we show that Hungary and Poland have better export possibilities that a number of West European countries and that Hungary has more export possibilities in the non-sensitive sector than Poland. Our results demonstrate that Europe Agreements appear to be less beneficial for Poland than for Hungary.

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

    Volume (Year): 38 (1996)
    Issue (Month): 2-3 (September)
    Pages: 1-19

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    Handle: RePEc:pal:compes:v:38:y:1996:i:2:p:1-19

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    Cited by:
    1. Paas, Tiiu, 2002. "Gravity approach for exploring Baltic Sea regional integration in the field of international trade," HWWA Discussion Papers 180, Hamburg Institute of International Economics (HWWA).
    2. Zhou, Bin & Cling, Jean-Pierre & Chaponnière, Jean-Raphael, 2010. "Vietnam Following in China’s Footsteps : The Third Wave of Emerging Asian Economies," Economics Papers from University Paris Dauphine 123456789/10802, Paris Dauphine University.
    3. Maria Paula Fontoura & Enrique Martínez-Galán & Isabel Proença, 2006. "Trade Potential in an Enlarged European Union: A Recent Approach," Working Papers Department of Economics 2006/08, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
    4. Isabel Proença & Maria Fontoura & Enrique Martínez-Galán, 2008. "Trade in the enlarged European Union: a new approach on trade potential," Portuguese Economic Journal, Springer, vol. 7(3), pages 205-224, December.

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