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(De)industrialisation and lessons for industrial policy in Central and Eastern Europe

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  • Nebojša Stojčić
  • Zoran Aralica

Abstract

Over the past two and a half decades, the economic landscape of Central and Eastern European countries (CEECs) has considerably changed. The demise of traditional industries and the rise of the service sector during the 1990s inclined economic structure towards deindustrialisation. In years that followed, new industries emerged in many of these countries and brought them back on the route of reindustrialisation. Across countries, this process developed at an uneven pace. The recent rise of awareness about the importance of industrial development for the well-being of nations makes it relevant to investigate the sources behind changes in the economic structure of CEECs. Our findings reveal that reindustrialisation takes place at an uneven pace. No support was found for horizontal economy-wide industrial policies advocated within new classical economics. Strong impulse to reindustrialisation comes through improvements in export sophistication. Such findings are in line with those on the position of CEECs in global value chains.

Suggested Citation

  • Nebojša Stojčić & Zoran Aralica, 2018. "(De)industrialisation and lessons for industrial policy in Central and Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 30(6), pages 713-734, November.
    • Handle: RePEc:taf:pocoec:v:30:y:2018:i:6:p:713-734
    DOI: 10.1080/14631377.2018.1443251
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    Cited by:

    1. Pawel Dobrzanski & Wojciech Grabowski, 2019. "Structural and productivity changes of Central and Eastern Europe," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 37(2), pages 427-471.
    2. Vitezić Vanja & Srhoj Stjepan & Perić Marko, 2018. "Investigating Industry Dynamics in a Recessionary Transition Economy," South East European Journal of Economics and Business, Sciendo, vol. 13(1), pages 43-67, June.
    3. Mikulić, Josip & Vizek, Maruška & Stojčić, Nebojša & Payne, James E. & Čeh Časni, Anita & Barbić, Tajana, 2021. "The effect of tourism activity on housing affordability," Annals of Tourism Research, Elsevier, vol. 90(C).
    4. Bole David & Kozina Jani & Tiran Jernej, 2019. "The variety of industrial towns in Slovenia: a typology of their economic performance," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 46(46), pages 71-83, December.
    5. Sardor Tadjiev & Pierre-Yves Donze, 2021. "The Development of the Automotive Industry in Post-Soviet Countries since 1991," Eurasian Journal of Business and Management, Eurasian Publications, vol. 9(2), pages 164-183.

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