Trade Specialisation and Economic Convergence: Evidence from Two Eastern European Countries
AbstractThis paper analyses trade specialisation dynamics in two Eastern European countries (Romania and Bulgaria - EEC-2) vis-à-vis the core EU member states (EU-15) over the period 1990-2006. Specifically, we focus on whether there is a shift towards intra-industry trade leading to economic convergence and technological catch-up. We use recently developed static (FEM, REM and FEVD) and dynamic (GMM) panel data methods which take into account possible heterogeneity. Our empirical results indicate that intra-industry trade has indeed increased, but it is of the vertical rather than the horizontal type, resulting in complementary rather than competitive production patterns.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 875.
Length: 27 p.
Date of creation: 2009
Date of revision:
Gravity models; panel data models; trade specialisation; comparative advantage;
Other versions of this item:
- Guglielmo Maria Caporale & Christophe Rault & Robert Sova & Anamaria Sova, 2011. "Trade Specialisation and Economic Convergence: Evidence from two Eastern European Countries," DEGIT Conference Papers c016_071, DEGIT, Dynamics, Economic Growth, and International Trade.
- Christophe Rault & Guglielmo Maria Caporale & Robert Sova & Anamaria Sova, 2009. "Trade Specialisation And Economic Convergence: Evidence From Two Eastern European Countries," William Davidson Institute Working Papers Series wp959, William Davidson Institute at the University of Michigan.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-13 (All new papers)
- NEP-EEC-2009-04-13 (European Economics)
- NEP-INT-2009-04-13 (International Trade)
- NEP-TRA-2009-04-13 (Transition Economics)
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