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TDoes Product Differentiation Explain The Increase in Exports of Transition Countries?

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  • Yener Kandogan

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    Abstract

    The paper analyzes the increase in transition countries’ exports to their non-traditional trade partners. It uses four different measures of product differentiation to find out the extent that the increase in product variety explains this phenomenon. It is found that opening up to new trade partners first increases the number of sectors in which trade occurs. This is followed by a brief period of specialization in some select sectors, and finally an increase in the number of varieties of products in these sectors. Lastly, the increase in product variety in CEEC has been much more substantial than in CIS.

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    File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp599.pdf
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    Bibliographic Info

    Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 2003-599.

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    Length: 23 pages
    Date of creation: 01 Jul 2003
    Date of revision:
    Handle: RePEc:wdi:papers:2003-599

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    Keywords: Product Variety; Eastern Europe; Commonwealth of Independent States;

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    2. Brenton, Paul & Gros, Daniel, 1997. "Trade Reorientation and Recovery in Transition Economies," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 13(2), pages 65-76, Summer.
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    Cited by:
    1. Frensch, Richard, 2004. "Public governance as the source of quality and variety gains from transition," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 388-408, September.

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