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Duration of trade of former communist countries at the EU

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  • Imre Ferto

    ()
    (Institute of Economics, Hungarian Academy of Sciences)

  • Károly Attila Soos

    ()
    (Institute of Economics, Hungarian Academy of Sciences)

Abstract

The article analyses the duration of exports of individual products of former communist countries to the enlarged European Union (EU25) employing survival analysis. The results show that the duration of trade differs across EU10 and EU15 markets, for the majority of countries the length of trade is higher in EU10 markets than in the EU15 markets. The estimations suggest that differentiated products are traded for more extended periods than homogenous products. In addition, trade relationships starting with large initial sales are more likely to survive the observed five year period than those starting with small values. Finally, the estimations are robust to both markets segments.

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Bibliographic Info

Paper provided by Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences in its series IEHAS Discussion Papers with number 0816.

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Length: 17 pages
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:has:discpr:0816

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Keywords: trade; former communist countries; EU;

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  1. Peter K. Schott, 2004. "Across-product Versus Within-product Specialization in International Trade," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 646-677, May.
  2. Tibor Besedes & Thomas Prusa, 2006. "Ins, outs, and the duration of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 266-295, February.
  3. Uwe Dulleck & Neil Foster & Robert Stehrer & Julia Woerz, 2005. "Dimensions of quality upgrading," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(1), pages 51-76, 01.
  4. 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.
  5. Jon Haveman & David Hummels, 2004. "Alternative hypotheses and the volume of trade: the gravity equation and the extent of specialization," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 199-218, February.
  6. Hoekman, Bernard & Djankov, Simeon, 1997. "Determinants of the Export Structure of Countries in Central and Eastern Europe," World Bank Economic Review, World Bank Group, vol. 11(3), pages 471-87, September.
  7. Robert C. Feenstra & Andrew K. Rose, 2000. "Putting Things In Order: Trade Dynamics And Product Cycles," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 369-382, August.
  8. Imre Ferto, 2007. "The Dynamics of Trade in Central and Eastern European Countries," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 5(1), pages 5-23.
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