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Fishing in the same pool? export strengths and competitiveness of China and CESEE in the EU-15 Market

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Author Info

  • Silgoner, Maria
  • Steiner, Katharina
  • Wörz, Julia
  • Schitter, Christian

Abstract

We investigate the impact of China as a global competitor on the trade performance of the ten Central, Eastern and Southeastern European EU Member States (CESEE-10) in the EU-15 market. The paper takes a comprehensive approach as we analyze export growth, export market shares, extensive and intensive margins and the dynamics in the number of joint trade links (Dynamic Trade Link Analysis) from 1995 to 2010. According to our findings, the most contested markets are those for capital goods and transport equipment. Overall, competition between CESEE-10 and China intensified as a result of their outstanding competitiveness and the continuous deepening of already existing trade relationships, while cutthroat competition has not materialized. While this suggests that the CESEE countries pursue a suitable export strategy, diversification of production toward promising new industries and markets remains essential, not least because the EU-15 market is projected to grow at a slower pace in the longer run. JEL Classification: F14, F15, O57

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Bibliographic Info

Paper provided by European Central Bank in its series Working Paper Series with number 1559.

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Date of creation: Jun 2013
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Handle: RePEc:ecb:ecbwps:20131559

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Keywords: central; China; competitiveness; Eastern and Southeastern Europe; trade shift-share analysis;

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  1. Angela Cheptea & Lionel Fontagné & Soledad Zignago, 2014. "European Export Performance," Post-Print hal-00975534, HAL.
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Cited by:
  1. Orszaghova, Lucia & Savelin, Li & Schudel, Willem, 2013. "External competitiveness of EU candidate countries," Occasional Paper Series 141, European Central Bank.
  2. Benkovskis, Konstantins & Silgoner, Maria & Steiner, Katharina & Wörz, Julia, 2013. "Crowding-out or co-existence? the competitive position of EU members and China in global merchandise trade," Working Paper Series 1617, European Central Bank.

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