Advanced Search
MyIDEAS: Login

How the market transition affected export performance in the Central European economies

Contents:

Author Info

  • Kaminski, Bartlomiej
  • DEC
Registered author(s):

    Abstract

    Empirical studies have paid little attention to the supply-side forces behind the export performance of the Central and Eastern European countries of Bulgaria, Czechoslovakia, Hungary, Poland, and Romania (CEE-5) in OECD markets after the collapse of central planning. The author examines export developments in these countries in 1980-91, focusing on how transformation programs affected trade. OECD markets now receive three-fourths of CEE-5 exports. Sustaining this market penetration is crucial for countries making the transition to market-based economies. The author provides insight into the impact of transformation-cum-stabilization programs on export performance. These insights are relevant to former centrally planned economies that have yet to restore marcoeconomic equilibrium and to liberalize prices. The author examines the export performance of the CEE-5 before and after the collapse of central planning. He finds a close link between export performance and the decision to move quickly to a market-based economy. Countries that removed administrative controls on prices, devalued currency, introduced unified exchange rates, and liberalized trade also expanded exports. Bulgaria and Romania, crippled by macroeconomic chaos and vacillating macroeconomic reform, registered drops in both exports and imports. The author suggests that differences among Czechoslovakia, Hungary, and Poland (CEE-3) had little to do with previous trends in export performance, external economic factors, and earlier attempts at trade reform. The expansion of exports in 1990-92 represented a dramatic reversal of trends prevalent in the prior two decades. The surge in exports is explained neither by the length of time experimenting with foreign trade under central planning nor by earlier trends in competitiveness in OECD markets. The driving force of export growth was manufactures, some of them redirected from CMEA markets, primarily to Germany. The severing of links that used to bind the economies of the CMEA had a less destructive impact on the foreign trade performance of the CEE-3 than one might have expected. The fact that exports to the CMEA fell at the same time that exports elsewhere (often of the same products) increased suggests a causal relationship.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1993/09/01/000009265_3961005151152/Rendered/PDF/multi0page.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1179.

    as in new window
    Length:
    Date of creation: 30 Sep 1993
    Date of revision:
    Handle: RePEc:wbk:wbrwps:1179

    Contact details of provider:
    Postal: 1818 H Street, N.W., Washington, DC 20433
    Phone: (202) 477-1234
    Email:
    Web page: http://www.worldbank.org/
    More information through EDIRC

    Related research

    Keywords: TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Environmental Economics&Policies; Trade Policy; Agribusiness&Markets; Economic Theory&Research;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Rosati MEP, Dariusz, 1992. "Problems of Post-CMEA Trade and Payments," CEPR Discussion Papers 650, C.E.P.R. Discussion Papers.
    2. Rodrik, Dani, 1992. "Foreign Trade in Eastern Europe's Transition: Early Results," CEPR Discussion Papers 676, C.E.P.R. Discussion Papers.
    3. Erzan, Refik & Holmes, Christopher & Safadi, Raed, 1992. "How changes in the former CMEA area may affect international trade in manufactures," Policy Research Working Paper Series 973, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Eichengreen, Barry & Kohl, Richard, 1998. "The External Sector, the State and Development in Eastern Europe," CEPR Discussion Papers 1904, C.E.P.R. Discussion Papers.
    2. 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, vol. 58(4), pages 489-509, December.
    3. Kaminski, Bartlomiej & Ng, Francis, 2006. "Bulgaria's integration into the Pan-European economy and industrial restructuring," Policy Research Working Paper Series 3863, The World Bank.
    4. Kaminski, Bartlomiej & Ng, Francis, 2004. "Romania's integration into European markets : implications for sustainability of the current export boom," Policy Research Working Paper Series 3451, The World Bank.
    5. Kaminski, Bartlomiej, 1999. "Hungary's integration into European Union markets - production and trade restructuring," Policy Research Working Paper Series 2135, The World Bank.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1179. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.