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How Much Restructuring did the Transition Countries Experience? Evidence from Quality of their Exports

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Author Info
Yener Kandogan ()
Abstract

The increase in exports to market economies is a good sign, but it is not conclusive about the extent of restructuring of production technologies experienced in transition countries. This paper explores the source of the increase with an analysis of their exports’ quality, interprets the results for the extent of restructuring, and discusses the potential factors behind them. Changes in factor intensity and unit values of both CEEC and CIS exports in different manufacturing sectors during 1992-1999 are analyzed. Although CEEC are in a significantly better position than CIS due to Europe Agreements, there is still large number of products with structural problems in CEEC. Insufficient FDI, the OPT in the Europe Agreements, and not fully exploited human capital are suggested as possible factors.

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Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 2004-637.

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Length: 32 pages
Date of creation: 01 Jan 2004
Date of revision:
Handle: RePEc:wdi:papers:2004-637

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Related research
Keywords: Unit values; Restructuring; Eastern Europe; Commonwealth of Independent States; Europe Agreements.;

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Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F15 - International Economics - - Trade - - - Economic Integration
O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects

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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.:
  1. Brenton, Paul & Gros, Daniel, 1997. "Trade Reorientation and Recovery in Transition Economies," Oxford Review of Economic Policy, Oxford University Press, vol. 13(2), pages 65-76, Summer.
  2. David Hummels & Peter J. Klenow, 2002. "The Variety and Quality of a Nation's Trade," NBER Working Papers 8712, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Johannes Stephan, 2002. "Industrial Specialisation and Productivity Catch-Up in CEECs - Patterns and Prospects -," IWH Discussion Papers 166, Halle Institute for Economic Research. [Downloadable!]
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  4. Djankov, Simeon & Hoekman, Bernard, 1996. "Intra-Industry Trade, Foreign Direct Investment and the Reorientation of East European Exports," CEPR Discussion Papers 1377, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Hoekman, Bernard & Djankov, Simeon, 1996. "Intra-industry trade, foreign direct investment, and the reorientation of Eastern European exports," Policy Research Working Paper Series 1652, The World Bank. [Downloadable!]
  6. Neven, Damien J, 1994. "Trade Liberalization with Eastern Nations. How Sensitive?," CEPR Discussion Papers 1000, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. King, Alan, 1993. "A Note on Export Unit Value Indices in Competitiveness Variables," Bulletin of Economic Research, Blackwell Publishing, vol. 45(1), pages 69-77, January.
  8. Aiginger, Karl, 1997. "The Use of Unit Values to Discriminate between Price and Quality Competition," Cambridge Journal of Economics, Oxford University Press, vol. 21(5), pages 571-92, September.
  9. Nathan Sheets & Simona Boata, 1998. "Eastern European Export Performance During The Transition," Contemporary Economic Policy, Western Economic Association International, vol. 16(2), pages 211-226, 04. [Downloadable!] (restricted)
  10. Grossman, Gene M & Helpman, Elhanan, 1991. "Quality Ladders and Product Cycles," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 557-86, May. [Downloadable!] (restricted)
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  11. Treml, Vladimir G., 1981. "The inferior quality of Soviet machinery as reflected in export prices," Journal of Comparative Economics, Elsevier, vol. 5(2), pages 200-221, June. [Downloadable!] (restricted)
  12. Michael Funke & Ralf Ruhwedel, 2002. "Export variety and export performance: Empirical evidence for the OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(1), pages 97-114, March. [Downloadable!] (restricted)
  13. Drábek, Zdenek & Smith, Alasdair, 1995. "Trade Performance and Trade Policy in Central and Eastern Europe," CEPR Discussion Papers 1182, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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