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Opening Up and Geographic Diversification of Trade in Transition Economies

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  • Oli Havrylyshyn
  • Hassan Al-Atrash
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    Abstract

    This paper looks at the progress in transition and the geographic diversification of trade, focusing on two issues--the degree of trade openness and trade integration--for a sample of countries in transition. It concludes that about half of the group of countries sampled are becoming as open as similar market economies, but that many others remain relatively closed. Geographic diversification (to the European Union) is found to be greater the closer is geographic proximity and the more advanced the country is with reforms. The analysis is then extended, in an illustrative way, to show how much larger would be the share of exports to the EU if structural reforms were more ambitious.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 98/22.

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    Length: 27
    Date of creation: 01 Feb 1998
    Date of revision:
    Handle: RePEc:imf:imfwpa:98/22

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    Cited by:
    1. Lev Freinkman & Evgeny Polyakov & Carolina Revenco, 2004. "Trade Performance and Regional Integration of the CIS Countries," World Bank Publications, The World Bank, number 14933, August.
    2. Funke, Michael & Ruhwedel, Ralf, 2003. "Export variety and economic growth in East European transition economies," BOFIT Discussion Papers, Bank of Finland, Institute for Economies in Transition 8/2003, Bank of Finland, Institute for Economies in Transition.
    3. Nauro F. Campos & Fabrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 470, William Davidson Institute at the University of Michigan.
    4. repec:wii:bpaper:bowp:070 is not listed on IDEAS
    5. Oleksandr Shepotylo, 2009. "Gravity with zeros: estimating trade potential of CIS countries," Discussion Papers 16, Kyiv School of Economics.
    6. Jože P. Damijan & Matija Rojec & Maja Ferjančič, 2011. "The Growing Export Performance of Transition Economies: EU Market Access versus Supply Capacity Factors," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(4), pages 489-509, December.
    7. repec:onb:oenbwp:y::i:105:b:1 is not listed on IDEAS
    8. Vedran Sosic & Boris Vujcic, 2005. "Trade integration and Croatian accession to the European Union," Chapters in books, Institute of Public Finance, in: Katarina Ott (ed.), Croatian Accession to the European Union: Facing the Challenges of Negotiations, volume 3, chapter 3, pages 61-84 Institute of Public Finance.
    9. World Bank, 2004. "Ukraine : Trade Policy Study, Volume 2. Main Report," World Bank Other Operational Studies 15656, The World Bank.
    10. World Bank, 2005. "Ukraine's Trade Policy : A Strategy for Integration into Global Trade," World Bank Publications, The World Bank, number 7431, August.
    11. Matthieu Bussière & Jarko Fidrmuc & Bernd Schnatz, 2005. "Trade Integration of Central and Eastern European Countries: Lessons from a Gravity Model," Working Papers, Oesterreichische Nationalbank (Austrian Central Bank) 105, Oesterreichische Nationalbank (Austrian Central Bank).
    12. Katrin Elborgh-Woytek, 2003. "Of Openess and Distance," IMF Working Papers, International Monetary Fund 03/207, International Monetary Fund.
    13. Öge Güney, Pelin & Hasanov, Mübariz, 2014. "Real interest rate parity hypothesis in post-Soviet countries: Evidence from unit root tests," Economic Modelling, Elsevier, Elsevier, vol. 36(C), pages 120-129.
    14. Kurmanalieva, Elvira & Vinokurov, Evgeny, 2011. "Holding together or falling apart:Results of gravity equation of the CIS trade," MPRA Paper 32003, University Library of Munich, Germany.
    15. Oleksandr Shepotylo, 2009. "Export diversification across industries and space: do CIS countries diversify enough?," Discussion Papers 20, Kyiv School of Economics.

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