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Determinants of Trade Specialization in the New EU Member States

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Author Info

  • Dora Borbély

    () (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))

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    Abstract

    European integration brings about major impulses for structural change in industry within the enlarged European Union. Underlying paper aims at explaining trade specialization patterns of the new EU member states as suppliers on the EU 15 market. The analysis is based on the key shifts in sectoral developments as shown via changing RCA indicators of relative export shares to the EU15. A dynamic panel analysis displays that the most important factors driving comparative advantages in trade are industrial production, export unit values, FDI, R&D, and low relative wages as compared to the EU 15 countries. The impact of these variables varies considerably when dealing either with total manufacturing, with labour intensive or with high-tech industries.

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    Bibliographic Info

    Paper provided by Universitätsbibliothek Wuppertal, University Library in its series EIIW Discussion paper with number disbei138.

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    Length: 35 Pages
    Date of creation: Nov 2005
    Date of revision:
    Handle: RePEc:bwu:eiiwdp:disbei138

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    Web page: http://elpub.bib.uni-wuppertal.de

    Related research

    Keywords: trade specialization; comparative advantage; dynamic panel analysis;

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    1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    3. Frank Windmeijer, 2000. "A finite sample correction for the variance of linear two-step GMM estimators," IFS Working Papers W00/19, Institute for Fiscal Studies.
    4. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
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