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Structural Change in the Transition Economies, 1989 to 1999

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  • Michael Landesmann

    ()
    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

This report gives an overview of patterns of structural change in Central and Eastern European economies over the decade 1989-1999. The analysis in this paper is restricted to a sub-sample of transition economies, namely the countries of Central and Eastern Europe (CEECs) - with the exception of the Baltic countries - which are currently also candidate countries for EU accession. While it would be interesting to extend the analysis to a wider range of transition economies, we were restricted by the use of a disaggregated database which allows reliable cross-country comparative analysis of patterns of structural change.* Furthermore, we only deal with a subset of issues which come under the heading of 'structural change' the focus of the analysis is on changes in the structures of production, employment and in the positions of CEECs in the European division of labour, i.e. on the CEECs' international specialization. The structure of the paper is as follows section 1 presents the broad patterns of sectoral change, i.e. the processes of deagrarization, deindustrialization and tertiarization which have taken place since the beginning of transition. Section 2 reviews some of the evidence on industrial restructuring and shows some interesting inter-country and inter-industry differences in this respect. Section 3 refers to the role which FDI plays in industrial restructuring and in the processes of industrial specialization of CEE economies. Section 4 reviews the developments of inter-industry and intra-industry specialization of CEECs in international trade with the EU. Section 5 refers to the evolving position of different CEECs in the European-wide division of labour and whether we can detect patterns of convergence in structure with different groups of EU economies. Section 6 reports the results of an econometric analysis of patterns of industry-level catching-up; the first part (6a) of this section deals with catching-up in productivity levels and wage rates, the second part (6b) with catching-up in product quality (measured by export unit values at a very detailed product level). Section 7 concludes with some remarks on the impact that EU accession might have on patterns of structural transformation and further East-West European integration.

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Bibliographic Info

Paper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Research Reports with number 269.

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Length: 60 pages including 13 Tables and 21 Figures
Date of creation: Sep 2000
Date of revision:
Publication status: Published as wiiw Research Report
Handle: RePEc:wii:rpaper:rr:269

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Keywords: Central and Eastern Europe; structural change; transition economies; industry; trade; foreign direct investment;

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Citations

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Cited by:
  1. Kálmán KALOTAY, 2010. "Patterns of inward FDI in economies in transition," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 55-76, December.
  2. Vladimir Gligorov & Mario Holzner & Michael Landesmann, 2003. "Prospects for Further (South) Eastern EU Enlargement: Form Divergence to Convergence?," wiiw Balkan Observatory Working Papers 30, The Vienna Institute for International Economic Studies, wiiw.
  3. Alessia Amighini & Stefano Chiarlone, 2005. "New comparative advantages in the Central and Eastern European countries," LIUC Papers in Economics 182, Cattaneo University (LIUC).
  4. Wolfgang Quaisser & John Hall, 2002. "Toward Agenda 2007 : Preparing the EU for Eastern Enlargement," Working Papers 240, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  5. Volkhart Vincentz & Michael Knogler, 2003. "Szenarien der mittelfristigen Konvergenz der EU-Beitrittsländer Polen, Slowakische Republik und Ungarn," Working Papers 244, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  6. Michael Landesmann & Hermine Vidovic, 2006. "Employment Developments in Central and Eastern Europe," wiiw Research Reports 332, The Vienna Institute for International Economic Studies, wiiw.
  7. Attila Csajbók (ed.) & Ágnes Csermely (ed.), 2002. "Adopting the euro in Hungary: expected costs, benefits and timing," MNB Occasional Papers 2002/24, Magyar Nemzeti Bank (the central bank of Hungary).
  8. Jan J. Rutkowski & Stefano Scarpetta, 2005. "Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 7408, October.
  9. Ivan Angelov, 2001. "Positive and Negative Effects from the Integration of Bulgaria to European Union," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 24-61.
  10. S. Montresor & G. Vittucci Marzetti, 2006. "Outsourcing and structural change: shifting firm and sectoral boundaries," Working Papers 566, Dipartimento Scienze Economiche, Universita' di Bologna.
  11. János Gács, 2003. "Transition, EU Accession and Structural Convergence," Empirica, Springer, vol. 30(3), pages 271-303, September.
  12. Jovan Zubovic, 2012. "Human Capital Development as a Tool for Managing Structural Changes - Secondary Education vs. Structural Change," Book Chapters, Institute of Economic Sciences.
  13. Michael A. Landesmann, 2003. "Structural features of economic integration in an enlarged Europe: patterns of catching-up and industrial specialisation," European Economy - Economic Papers 181, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  14. Desislava Kolarova, 2003. "Business Services in the Economies of France and Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 85-101.

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