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Product variety and the export pattern of Poland 1999-2006

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  • Tomasz Brodzicki

    ()
    (Faculty of Economics, University of Gdansk)

Abstract

The goal of this article is to investigate the role of product variety and changes in the product variety in the patter of exports of Poland a middle-sized open economy in the second phase of economic transition to a benchmark group of countries – EU15. The analysis covers the period 1999-2006 and is carried out on highly disaggregated trade data. In the analysis we utilize both simple index of variety of products as well as an index of relative variety of products. Attention is given to the scope and structure of intra-industry trade. The overall product variety in exports to EU15 as measured by simple product counts is found to have decreased while relative product variety in comparison to EU15 Member States remained at roughly unchanged level. Furthermore we investigate the link between the changes in export variety and the growth of TFP in Polish manufacturing industry sectors. The conclusions are drawn from dynamic panel data model controlling for several features suggested by the literature of the subject. The results are rather intriguing and need further robustness tests.

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File URL: http://gnu.univ.gda.pl/~keie/aio16.pdf
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Bibliographic Info

Paper provided by Economics of European Integration Department, Faculty of Economics, University of Gdansk, Poland in its series Working Papers with number 0903.

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Length: 35 pages
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:gda:wpaper:0903

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Keywords: product variety; productivity; horizontal differentiation; system GMM estimator;

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  1. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  2. Greenaway, David & Hine, Robert C & Milner, Chris, 1995. "Vertical and Horizontal Intra-industry Trade: A Cross Industry Analysis for the United Kingdom," Economic Journal, Royal Economic Society, vol. 105(433), pages 1505-18, November.
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  5. Kolasa, Marcin, 2007. "How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers, absorptive capacity and competition," MPRA Paper 8673, University Library of Munich, Germany.
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  7. Keller, Wolfgang, 2001. "The geography and channels of diffusion at the world's technology frontier," HWWA Discussion Papers 123, Hamburg Institute of International Economics (HWWA).
  8. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
  9. Michael Funke & Ralf Ruhwedel, 2003. "Export variety and economic growth in East European transition economies," Macroeconomics 0307002, EconWPA.
  10. 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.
  11. Robert J. Barro & Xavier Sala-i-Martin, 2003. "Economic Growth, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262025531, December.
  12. Grubel, Herbert G & Lloyd, P J, 1971. "The Empirical Measurement of Intra- Industry Trade," The Economic Record, The Economic Society of Australia, vol. 47(120), pages 494-517, December.
  13. Tomasz Brodzicki, 2009. "Extended Gravity Panel Data Model of Polish Foreign Trade," Working Papers 0901, Economics of European Integration Department, Faculty of Economics, University of Gdansk, Poland.
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