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Growing export performance of transition economies: EU market access versus supply capacity factors

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Author Info
Joze P. Damijan
Matija Rojec
Maja Ferjancic

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Abstract

Remarkable growth of export performance of transition economies has been one of the most outstanding features of the transition and EU integration processes. The paper looks at the reasons behind this phenomenon. Following Redding and Venables (2003, 2004), and Fugazza (2004), we distinguish between foreign/EU market access and internal supply capacity factors. EU market access has been of great importance for export performance but does not explain the inter country differences. Inter country differences in export performance are explained by internal supply capacity factors, where stable institutional setup, structural reforms, and targeted FDI are in the forefront.

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File URL: http://www.econ.kuleuven.ac.be/licos/DP/DP2008/DP202.pdf
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Paper provided by LICOS - Centre for Institutions and Economic Performance, K.U.Leuven in its series LICOS Discussion Papers with number 20208.

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Date of creation: 2008
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Handle: RePEc:lic:licosd:20208

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Related research
Keywords: export performance transition economies of Central and Eastern Europe (EU) market access supply capacity institutional setup FDI

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Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F15 - International Economics - - Trade - - - Economic Integration
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General

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  2. Stephen Redding & Anthony J. Venables, 2003. "Geography and Export Performance: External Market Access and Internal Supply Capacity," NBER Working Papers 9637, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Rosati MEP, Dariusz, 1992. "Problems of Post-CMEA Trade and Payments," CEPR Discussion Papers 650, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Kaminski, Bartlomiej & DEC, 1993. "How the market transition affected export performance in the Central European economies," Policy Research Working Paper Series 1179, The World Bank. [Downloadable!]
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  7. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. Havrylyshyn, Oleh & Pritchett, Lant, 1991. "European trade patterns after the transition," Policy Research Working Paper Series 748, The World Bank. [Downloadable!]
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  10. Hassan Al-Atrash & Oli Havrylyshyn, 1998. "Opening Up and Geographic Diversification of Trade in Transition Economies," IMF Working Papers 98/22, International Monetary Fund.
  11. Clifford Zinnes & Yair Eilat & Jeffrey Sachs, 2001. "Benchmarking competitiveness in transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(2), pages 315-353, July. [Downloadable!] (restricted)
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